diversifiable risk

Definition

The risk of price change due to the unique circumstances of a specific security, as opposed to the overall market. This risk can be virtually eliminated from a portfolio through diversification. also called unsystematic risk.

Use diversifiable risk in a sentence

You should try to make sure that you know how much diversifiable risk there will be and make sure it is worth it.

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It was a diversifiable risk and nothing could prevent us from doing what we needed to do and how we were going to do it.

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There was some obvious diversifiable risk with the small number of securities we invested in but we believed in them greatly.

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divergence diversification