Specific risk

From ACT Wiki
Revision as of 09:20, 1 June 2015 by imported>Doug Williamson (Align with qualifications material.)
Jump to navigationJump to search

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.


See also