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". Investopedia Says:
For example, news that is specific to a small number of stocks, such as a sudden strike by the employees of a company you have shares in, is considered to be unsystematic risk. Related Terms:
Active Risk
Granular Portfolio
Home Bias
Micro Risk
Risk
Risk-Return Tradeoff
Systematic risk
Treynor-Black Model |