Meaning of specific risk | Babel Free

Definitions

A risk inherent in a small group of assets that can be mitigated by diversifying, investing in a broad portfolio of assets.

countable, uncountable

Examples

“Therefore, the value is actually exposed to changes in two different risk⟳ factors, i.e., systemic risk⟳ and specific risk⟳.”

“The fourth type⟳ of risk⟳ is called specific risk⟳. As the name⟳ implies, specific risk⟳ is associated with the risk⟳ of a specific investment or a specific investment manager. Specific risk⟳ is one of the most dangerous types of risk⟳, but fortunately it's also one of the easiest to eliminate.”

“By investing in individual companies, you're exposing yourself to specific risk⟳, or unique business challenges faced by companies. Specific risk⟳ is very different than systematic risk⟳, or risk⟳ faced by all stocks.”

CEFR level