unsystematic risk

unsystematic risk
Risk peculiar to an asset, which can be eliminated through diversification.
Syn: diversifiable risk, residual risk

Wikipedia foundation.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • 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

  • 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

  • unsystematic risk — ne sistemos rizika statusas T sritis turto vertinimas apibrėžtis Atskirai įmonei, turtui ar turto grupei kylanti rizika. Ne sistemos rizika gali būti skaidoma. atitikmenys: angl. unsystematic risk ryšiai: palygink – sistemos rizika šaltinis… …   Lithuanian dictionary (lietuvių žodynas)

  • unsystematic risk — The part of an asset’s risk that can be controlled or eliminated through *diversification …   Auditor's dictionary

  • Risk — Typically defined as the standard deviation of the return on total investment. Degree of uncertainty of return on an asset. The New York Times Financial Glossary * * * ▪ I. risk risk 1 [rɪsk] noun 1. [countable, uncountable] the possibility that… …   Financial and business terms

  • risk — (1) Noun The possibility of loss. (2) Noun The uncertainty of whether events, expected or otherwise, will have an adverse impact. In this context, the adverse impact is usually a quantity of return ( income) or value at risk. (3) Noun the… …   Financial and business terms

  • risk — The *probability of the occurrence of an event with negative consequences. The IIA defines risk as the probability that an event or action, or inaction, may adversely affect the organization or activity under review (quoted in Hermanson and… …   Auditor's dictionary

  • Specific Risk — Risk that affects a very small number of assets. specific risk, as its name would imply, relates to risks that are very specific to a company or small group of companies. This type of risk would be the opposite of a overall market risk, or… …   Investment dictionary

  • Idiosyncratic Risk — Unsystematic risk or risk that is uncorrelated to the overall market risk. In other words, the risk that is firm specific and can be diversified through holding a portfolio of stocks. The New York Times Financial Glossary …   Financial and business terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”