DIE GEBRUIK VAN DIE ENKEL-INDEKSMODEL OM SISTEMATIESEEN NIE-SISTEMATIESE RISIKO BY MIELIEPRODUSKSIE IN STREEK C TE KWANTIFISEER

This paper demonstrate the use of the single index model of Sharpe in order to quantify systematic and unsystematic risk for maize production in Development Region C (Orange Free State Region). The systematic risk shows the percentage of risk that is beyond the producers control. This risk is mostly...

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Bibliographic Details
Published in:Agrekon 1990-12, Vol.29 (4), p.371-382
Main Authors: Greyling, L. P, Laubscher, J. M
Format: Article
Language:English
Subjects:
Crop Production/Industries
Production Economics
Research Methods/ Statistical Methods
Online Access:Get full text
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Summary:This paper demonstrate the use of the single index model of Sharpe in order to quantify systematic and unsystematic risk for maize production in Development Region C (Orange Free State Region). The systematic risk shows the percentage of risk that is beyond the producers control. This risk is mostly anributable to market risk. The unsystematic risk on the other hand, is the percentage of risk that the producer can control. Unsystematic risk can be eliminated by diversification.
ISSN:0303-1853
2078-0400
DOI:10.22004/ag.econ.267335