Diversifiable Risk Definition | Becker

Accounting Dictionary

Diversifiable Risk

Diversifiable risk (also called unsystematic risk) is the risk of an individual stock (in a portfolio) that can be eliminated by diversification. Diversifiable risk is caused by such random events as lawsuits, strikes, successful and unsuccessful marketing programs, and other events that are unique to a particular firm. See also nondiversifiable risk.

Related Terms:

Nondiversifiable Risk [BAR]Back to Dictionary

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