Risk that is specific to a particular security or sector so its impact on a diversified portfolio is limited.... more on: Diversifiable risk
The portion of an investment's risk resulting from uncontrollable or random events, that can be eliminated through diversification; also called unsystematic risk.
Risk that can be avoided by diversification.
That part of a security's risk associated with random events; it can be eliminated by proper diversification.
The part of the total investment risk that can be reduced by diversification. Also known as non-market risk or non-systematic risk. See diversification, modern portfolio theory (MPT).
A risk that specifically affects a single asset or a small group of assets. Also called unique or unsystematic risk.