What is an Example of Unsystematic Risk? What are the Characteristics of Unsystematic Risk? In corporate finance, unsystematic risk is defined as the risk that pertains specifically to individual securities or a particular industry. Often used interchangeably with the term “idiosyncratic risk”, unsyst...
Definition:Unsystematic risk, also known as diversifiable risk or non-systematic risk, is the danger that relates to a particular security or a portfolio of securities. Investors construct diversified portfolios in order to allocate the risk over differentclasses of assets. What Does Unsystematic Risk ...
Finance 305: Risk Management 11 chapters | 74 lessons Ch 1. Foundations of Risk & Risk Management Risk Attitude Types, Determination & Analysis 6:29 External Environmental Changes Drive the Need for Risk Management 5:46 Systemic vs. Unsystematic Risk | Definition, Types & Comparison 6:10...
To continue learning about this stock market subject, check out the accompanying lesson titled Systematic & Unsystematic Risk: Definition & Examples. This lesson looks at the following goals: Define diversification, risk and other key concepts in the lesson ...