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Published On:Tuesday 3 January 2012
Posted by Muhammad Atif Saeed

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".

Explanation:
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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Posted by Muhammad Atif Saeed on 22:43. Filed under , . You can follow any responses to this entry through the RSS 2.0. Feel free to leave a response

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I am doing ACMA from Institute of Cost and Management Accountants Pakistan (Islamabad). Computer and Accounting are my favorite subjects contact Information: +923347787272 atifsaeedicmap@gmail.com atifsaeed_icmap@hotmail.com

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