Investors prefer to invest in different stocks as opposed to just a single stock. This is follows with the saying “Do no put all your eggs in one basket”. The main aim for developing a portfolio is to reduce unsystematic risk. Unsystematic risk is unique to a specific company or…

Credit risk is the risk of a borrower not repaying a loan, credit card or any other type of credit facility. Credit risk is an important topic in the field of finance because banks and other financial institutions heavily invest in reducing their credit risk. The main reason behind the…