Definition of Specific risk:
Specific risk is also referred to as unsystematic risk or diversifiable risk.
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.
General: Probability of loss or failure peculiar to a particular activity (or set of activities) or phenomenon.
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?
- Systemic risk affects (almost) every company and industry.
- The wise investor minimizes both by diversifying.
- Specific risk is peculiar to a company or an industry.
Meaning of Specific risk & Specific risk Definition