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Firm-specific Risk
The portion of an investment's risk that is attributable to the unique circumstances of the specific company, as opposed to market-wide risk.
Diversification
Diversification is an investment strategy that involves spreading investments among various financial instruments, industries, and other categories to reduce exposure to any single asset or risk.
Portfolio
A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs).
Financial Characteristics
Refers to attributes that describe the financial health, performance, and structure of a company, such as revenue, profitability, debt levels, and liquidity ratios.
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