Specific risk: Difference between revisions
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imported>Doug Williamson (Align with qualifications material.) |
imported>Doug Williamson (Link with Systematic risk page.) |
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In the Capital Asset Pricing Model specific risk is the component of total risk which is fully diversified away by rational investors. | In the Capital Asset Pricing Model specific risk is the component of total risk which is fully diversified away by rational investors. | ||
Also known as Unsystematic risk, Diversifiable risk, or Idiosyncratic risk. | Also known as Unsystematic risk, Diversifiable risk, or Idiosyncratic risk. | ||
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* [[Diversification]] | * [[Diversification]] | ||
* [[Market risk]] | * [[Market risk]] | ||
* [[Specific equity risk]] | |||
* [[Systematic risk]] | |||
[[Category:Financial_risk_management]] | [[Category:Financial_risk_management]] | ||
Latest revision as of 19:57, 21 January 2018
In the Capital Asset Pricing Model specific risk is the component of total risk which is fully diversified away by rational investors.
Also known as Unsystematic risk, Diversifiable risk, or Idiosyncratic risk.
