Specific risk

Specific risk,

Definition of Specific risk:

  1. Specific risk is also referred to as unsystematic risk or diversifiable risk.

  2. Investing and trading: (1) Probability of loss peculiar to a particular opportunity or security and not to the financial markets in general. (2) Risk of the specific return. See also systemic risk.

  3. General: Probability of loss or failure peculiar to a particular activity (or set of activities) or phenomenon.

  4. To an investor, specific risk is a hazard that applies only to a particular company, industry, or sector. It is the opposite of overall market risk or systematic risk. .

How to use Specific risk in a sentence?

  1. Systemic risk affects (almost) every company and industry.
  2. The wise investor minimizes both by diversifying.
  3. Specific risk is peculiar to a company or an industry.

Meaning of Specific risk & Specific risk Definition