Abstract
This paper first states the differences between systematic and non-systematic risks from several aspects and secondly emphasizes the importance of risk recognition. Then an alternative approach used to understand risks, the Capital Asset Pricing Model (CAPM), is explained, for further measurement and understanding of Systematic and non-systematic risks, while there are still some limitations. Finally, some strategies that can be used in a real-time dynamic stock market are recommended, mainly focusing on the application of beta values.
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More From: Journal of Education, Humanities and Social Sciences
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