Diversifiable risk

Related: unsystematic risk. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • diversifiable risk — Related: unsystematic risk …   Financial and business terms

  • Systemic risk — In finance, Systemic Risk is that risk which is common to an entire market and not to any individual entity or component thereof. It can be defined as financial system instability, potentially catastrophic, caused or exacerbated by idiosyncratic… …   Wikipedia

  • unsystematic risk — The risk of price change for an individual stock, commodity, or industry. Anything from an oil discovery to a change in management could affect this sort of risk. Unsystematic risks are reduced or eliminated through diversification of holdings,… …   Financial and business terms

  • Unsystematic risk — Also called the diversifiable risk or residual risk. The risk that is unique to a company such as a strike, the outcome of unfavorable litigation, or a natural catastrophe that can be eliminated through diversification. Related: Systematic risk * …   Financial and business terms

  • Systematic Risk — The risk inherent to the entire market or entire market segment. Also known as un diversifiable risk or market risk. Interest rates, recession and wars all represent sources of systematic risk because they affect the entire market and cannot be… …   Investment dictionary

  • Unsystematic Risk — Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through appropriate diversification. Also known as specific risk , diversifiable risk or residual risk . For example, news that… …   Investment dictionary

  • Nonsystematic risk — Nonmarket or firm specific risk factors that can be eliminated by diversification. Also called unique risk or diversifiable risk. Systematic risk refers to risk factors common to the entire economy. The New York Times Financial Glossary …   Financial and business terms

  • Unique risk — Also called unsystematic risk or idiosyncratic risk. Specific company risk that can be eliminated through diversification. See: diversifiable risk and unsystematic risk. The New York Times Financial Glossary …   Financial and business terms

  • nonsystematic risk — Nonmarket or firm specific risk factors that can be eliminated by diversification. Also called unique risk or diversifiable risk. systematic risk refers to risk factors common to the entire economy. Bloomberg Financial Dictionary …   Financial and business terms

  • unique risk — Also called unsystematic risk or idiosyncratic risk. Specific company risk that can be eliminated through diversification. Bloomberg Financial Dictionary See: diversifiable risk and unsystematic risk. Bloomberg Financial Dictionary …   Financial and business terms

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