Systematic risk evaluates the probability and extent of negative consequences to the larger body.

Systematic risk evaluates the probability and extent of negative consequences to the larger body.

Systematic risk evaluates the probability and extent of negative consequences to the larger body. For example, the government has a record of intervening in the event of a probable bank failure; the government’s larger concern is the negative impact on bank customers. Some call this a government bail-out.

Discuss the effect on stock market investor confidence should bank customers, individuals and businesses alike, lose access to savings and undergo a loss of future purchasing power due to a bank failure.

Answer preview Systematic risk evaluates the probability and extent of negative consequences to the larger body.

APA

373 words