diversifiable risk

Noun

diversifiable risk (countable and uncountable, plural diversifiable risks)

1. An investment risk that can be mitigated by diversification of an asset portfolio.
   • The Comments certainly contemplate that, with respect to uncompensated, diversifiable risk, fiduciaries act with that objective in mind: “[M]ore than conservatism or a duty of caution,” the duty to diversify is a “warning” that a “central feature” of the prudence of risk-taking “ordinarily is the...2004, Harvey E. Bines and Steve Thel, Investment Management Law and Regulation (Second Edition), Aspen Publishers, page 412
   • Diversifiable risk is an asset's risk that is related to a particular business event, such as a strike, and which can be overcome by diversification.2008, Business Management: A Contemporary Approach, Juta & Co., page 109

   Synonyms:

   specific risk, unsystematic risk