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.
Related information about idiosyncratic risk:
- Idiosyncratic Risk Definition | Investopedia
Risk that affects a very small number of assets, and can be almost eliminated with diversification. Similar to unsystematic risk.
- Systematic risk - Wikipedia, the free encyclopedia
In contrast, idiosyncratic risk (sometimes called specific risk, unsystematic risk, residual risk, or diversifiable risk) is risk to which only specific agents or industries ...
- What is idiosyncratic risk? definition and meaning
Definition of idiosyncratic risk: The risk of price change due to the unique circumstances of a specific security, as opposed to the overall market. This risk can be ...
- Idiosyncratic Risk and Security Returns - The University of Texas at ...
idiosyncratic risk could also be priced to compensate rational investors for an in- ... as a reasonable first order approximation, but find that idiosyncratic risk might ...
- Idiosyncratic Risk - Financial Dictionary - The Free Dictionary
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 ...
- Idiosyncratic Risk Matters! - the Department of Economics, Yale ...
market. We show that idiosyncratic risk explains most of the variation of average stock risk through time and it is idiosyncratic risk that drives the forecastability ...
- Idiosyncratic Risk Definition - NASDAQ.com
Idiosyncratic Risk: read the definition of Idiosyncratic Risk and 8000+ other financial and investing terms in the NASDAQ.com Financial Glossary.
- Does Idiosyncratic Risk Really Matter? - College of Business ...
way of examining the relation between idiosyncratic risk and return on the value- weighted ... or idiosyncratic risk cannot explain the excess return on the market.