diversifiable risk
Word Rarity
Very rare
Frequency: Zipf frequency 0.00 in modern English
30
Scrabble Score
17
Letters
5
Syllables
11
Unique Chars
Meaning
noun
An investment risk that can be mitigated by diversification of an asset portfolio.
Countable; Uncountable
Example Sentences
- "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 reduction of uncompensated risk through diversification.”"
- "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."
- "The risk of an investment consists of two components: diversifiable and non-diversifiable risk. Diversifiable risk, sometimes called unsystematic risk, results from uncontrollable or random events that are company-specific, such as labour strikes, lawsuits and regulatory actions."