Examlex
Provide the reagents necessary to carry out the following conversion.
Unsystematic Risk
The risk associated with a specific issuer of a security, such as a company's financial health or management decisions, also known as "specific risk" or "idiosyncratic risk."
Portfolio Diversification
An investment strategy aimed at reducing risk by allocating investments across various financial instruments, industries, or other categories.
Risk Premium
The additional return demanded by investors for taking on the higher risk associated with an investment, compared to a risk-free asset.
Unsystematic Risk
The risk associated with a specific company or industry, also known as diversifiable risk or idiosyncratic risk.
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