Distingush between systematic and unsystematic risks?

Systematic Risk:

It is the risk in financial market or in market general which exists due to factors which are beyond the control of humans or the people working in market and that;s why risk free rate use in market is only exists there to protect the investors from that systemetic risk.

Unsystematic Risk:

This is the risk other than systematic risk and which is due to factors directly controllable by the people dealing in market and market risk premium rate is paid due to compensate this type of unsystematic risk in market.

Total Risk = Systematic Risk + Unsystematic Risk

First answer by Jabirshah. Last edit by Jabirshah. Contributor trust: 88 [recommend contributor]. Question popularity: 1 [recommend question]