unsystematic risk
one that is unique to a specific security. It is the antithesis of market (or systematic) risk.
Unsystematic Risk
Risk that affects a very small number of assets. Sometimes referred to as specific risk.
Notes:
For example, news that is specific to a small number of stocks, such as a sudden strike by the employees of a company you have shares in.
Unsystematic Risk A risk that is unique to a firm or industry. The returns on an ASSET can be affected by occurrences such as a labour strike, changes in consumer preferences, or even wrong management decisions.
Unsystematic Risk: The uncertainties that are specific to one particular company and do not affect the market as a whole.
Unsystematic Risk
The amount of total risk that can be eliminated by diversification by
creating a portfolio. Also known as asset-specific risk or
company-specific risk.
Unsystematic Risk - Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through appropriate diversification.
Also known as "specific risk", "diversifiable risk" or "residual risk".
Unsystematic Risk: The amount of risk in a portfolio that can be eliminated by diversification.
Unsystematic risk
Also called the diversifiable risk or residual risk. The risk that is unique to a company such as a strike, the outcome of unfavorable litigation, or a natural catastrophe that can be eliminated through diversification.
Unsystematic risk or risk that is uncorrelated to the overall market risk. In other words, the risk that is firm specific and can be diversified through holding a portfolio of stocks.
IDR
See: International Depository Receipt ...
Unsystematic risk, also known as specific risk or diversifiable risk is the risk inherent in each investment. Investors can offset specific risk with proper diversification.
Unsystematic risk is firm-specific risk that is unique to a security and hence can be eliminated by forming diversified portfolios.
Unusual items ...
Unsystematic risk (diversifiable risk)
Risk that leads to an increase or a drop in the value of a security or portfolio and is unrelated to the market.
Related: Unsystematic risk
Diversification
Dividing investment funds among a variety of securities with different risk, reward, and correlation statistics so as to minimize unsystematic risk. Diversified investment company ...
Because the unsystematic risk is diversifiable, the total risk of a portfolio can be viewed as beta.
[edit] The market portfolio ...
Idiosyncratic Risk Unsystematic risk or risk that is uncorrelated to the overall market risk. In other words, the risk that is firm-specific and can be diversified through holding a portfolio of stocks.
Principle of diversification That portfolios of different sorts of assets differently correlated with one another will have negligible unsystematic risk.
Diversifiable risk Related: Unsystematic risk Diversification Dividing investment funds among a variety of securities with different risk, reward, and correlation statistics so as to minimize unsystematic risk.
Principal of diversification Highly diversified portfolios will have negligible unsystematic risk. In other words, unsystematic risks disappear in portfolios, and only systematic risks survive. Principal only (P.O.) A mortgage-backed security (M.B.S.
Unique risk Also called unsystematic risk or idiosyncratic risk. Specific company risk that can be eliminated through diversification. See: Diversifiable risk and unsystematic risk.
Firm-specific risk See:diversifiable risk or unsystematic risk. First notice day The first day, varying by contracts and exchanges, ...
Related: Unsystematic risk
Residuals
(1) Part of stock returns not explained by the explanatory variable (the market index return). Residuals measure the impact of firm-specific events during a particular period.
COMPANY-SPECIFIC RISK - Related: Unsystematic risk
COMPARABILITY - is the quality or state of being similar or alike.
COMPARABLE - a publicly traded company with similar characteristics to a private company that is being ...
That portfolios of different sorts of assets differently correlated with one another will have negligible unsystematic risk.
How Many Stocks Diversify Unsystematic Risk?
5
Non-Market Risk and a Concentrated Portfolio ...
Diversifiable Risk definition :
Related: Unsystematic risk
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FTSE, DAX, EUR-USD 1pt and WALL St, GBP-USD, 2pts ...
The sum of systematic and unsystematic risk.
Tout
To promote a security in order to attract buyers.
By contrast, the unique risk (also called specific risk, residual risk, unsystematic risk) expresses the degree of securities correlation and is not associated with market returns.
Dividing investment funds among a variety of securities with different risk, reward, and correlation statistics so as to minimize unsystematic risk.
Dividend ...
The CAPM details why every investment contains two distinct risks, the systematic risk due to being in the market, and the unsystematic risk of a company's operations, and how they should be assessed in terms of individual securities and portfolios.
Also called undiversifiable risk or market risk, the minimum level of risk that can be obtained for a portfolio by means of diversification across a large number of randomly chosen assets. Related: unsystematic risk
Personal Finance Headlines ...
unsystematic risk The risk of price change due to the unique circumstances of a specific security,... unwind Unwinding a trade refers to action of cancelling out an earlier position with...
 See also: Systematic risk, Expected return, Expense, Banks, Values
  
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