Unsystematic risk

Unsystematic risk,

Definition of Unsystematic risk:

  1. Unsystematic risk is unique to a specific company or industry. Also known as “nonsystematic risk,” "specific risk," "diversifiable risk" or "residual risk," in the context of an investment portfolio, unsystematic risk can be reduced through diversification.

  2. Popular but erroneous term for non-systemic risk.

  3. This can be contrasted with systematic risk, which is inherent in the market.

How to use Unsystematic risk in a sentence?

  1. Unsystematic risk, or specific risk, is that which is associated with a particular investment such a company's stock.
  2. Unsystematic risk can be mitigated through diversification, and so is also known as diversifiable risk.
  3. Once diversified, investors are still subject to market-wide systematic risk.

Meaning of Unsystematic risk & Unsystematic risk Definition

Unsystematic Risk,

Unsystematic Risk: What is the Meaning of Unsystematic Risk?

  1. Non-military risk is specific to a particular company or industry. In the context of the investment portfolio, which is also called non-managerial risk, specific risk, diversified risk or residual risk, diversified risk can be reduced through diversification.

    • Non-military risk or specific risk is the risk associated with a particular investment, such as a company's stock.
    • Diversification can reduce non-military risk and for this reason it is also called diversified risk.
    • Once diversified, investors are exposed to organized risk in the markets.

  2. It is also called residual threat. Risks such as sudden strike of employees such as company stock price, production, etc.

Literal Meanings of Unsystematic Risk


Meanings of Unsystematic:
  1. Not following a set plan or unconventional system

Sentences of Unsystematic
  1. Irregularly excavated tombs

Synonyms of Unsystematic

indiscriminate, undirected, uncoordinated, unpremeditated, unmethodical, disorganized, unarranged, unplanned


Meanings of Risk:
  1. Do not expose anyone or anything of harm or value.

  2. Conditions involved in exposure to hazards

Sentences of Risk
  1. Disobeying the law is very dangerous

Synonyms of Risk

probability, wager, imperil, likelihood, gamble with, put at risk, possibility, fear, peril, danger, threat, chance, bet, put in danger, gamble, menace, hazard, expose to danger, jeopardize, endanger, prospect, take a chance with