Examlex
________ includes rules that determine what can and cannot be entered in specific cells.
Systematic Risk
Market or sector-wide risk, commonly called market risk, that remains despite attempts at diversification.
Unsystematic Risk
The risk associated with a specific company or industry, which can be reduced through diversification, unlike systematic risk which affects the entire market.
Portfolio Diversification
A strategy for managing risk that involves diversifying a portfolio with a broad range of investments to reduce the effect of the performance of any individual asset.
Security
A financial instrument that represents ownership (stocks), a creditor relationship (bonds), or rights to ownership (options) that can be bought and sold.
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