Examlex
Match each term with its meaning.
-aromatic plant used in medicines or seasoning
Systematic Risk
The portion of investment risk that is inherent in the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.
Market Risk
The potential for investors to experience losses due to factors that affect the overall performance of the financial markets.
Diversified Away
Refers to the reduction of risk in a portfolio by investing in a variety of assets, thus minimizing the impact of any single investment's performance.
Firm-specific Risk
The risk associated with an individual company, which can be mitigated through diversification.
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