单词 | idiosyncratic risk |
释义 | idiosyncratic riskDefinition The possibility that the price of an asset may decline due to an event that could specifically affect that asset but not the market as a whole. For example, if a company suffers a major plant closure due to a disaster, its stock price may be affected while the rest of the market is not. Idiosyncratic risk can be reduced through proper diversification. Also called unsystematic risk. |
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