Idiosyncratic risk

Advanced Financial Analysis

Risk specific to an individual investment or company that can be eliminated through portfolio diversification, such as management failures, product recalls, or lawsuits.

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Unit 02: the price of risk

Advanced Financial Analysis

Related Terms

Systematic risk

Risk that affects the entire market and cannot be eliminated...

Diversification

The strategy of spreading investments across different asset...

Beta

A measure of how much an asset's price moves relative to the...