Diversifiable risk
Revision as of 22:44, 29 October 2019 by Gary (talk | contribs) (Created page with "Diversifiable risk is a risk that refers to that part of a security's total risk associated with random events not affecting the market as a whole. This risk can be elimin...")
Diversifiable risk is a risk that refers to that part of a security's total risk associated with random events not affecting the market as a whole. This risk can be eliminated by proper diversification. Also known as company specific risk.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Diversifiable risk. Refers to that part of a security's total risk associated with random events not affecting the market as a whole. This risk can be eliminated by proper diversification. Also known as company specific risk.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
