| Systemic risk |
| This implies ‘risk in the system’. This risk applies to the entire market and includes risks such as interest rate risk, inflation risk, exchange rate risk, political risk, etc. Some of the important |
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| Non-systematic Risk |
| This is risk that is very specific to a particular stock or an industry. Some of the important non-systemic risks are indicated below: |
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| Coping with Risks |
| While systemic risks are not in one’s control, non-systemic risks can be assessed for each company before one makes an investment decision. |
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