Idiosyncratic Risk - Unsystematic risk or risk that is uncorrelated to the overall market risk. In other words, the risk that is firm specific and can be diversified through holding a portfolio of stocks.
Risk that affects a very small number of assets, and can be almost eliminated with diversification. Similar to unsystematic risk.
Idiosyncratic Risk : unsystematic risk or risk that is uncorrelated to the overall market risk. in other words, the risk that is firm specific and can be diversified through holding a portfolio of stocks.
risk that affects a very small number of assets, and can be almost eliminated with diversification. similar to unsystematic risk.