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".

explains 'Unsystematic Risk'

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, is considered to be unsystematic risk.

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By Muhammad Atif Saeed on 21:23. Filed under Definitions , N , u . Follow any responses to the RSS 2.0. Leave a response