Examlex
A cognitive process by which individuals or groups draw on disciplinary perspectives and integrate their insights and modes of thinking to
Advance their understanding of a complex problem with the goal of
Applying it to a real-world problem is the definition of
Market Risk
The risk of losses in investments due to factors that affect the overall performance of the financial markets, including economic, political, and geopolitical events.
Diversifiable Risk
The component of an investment's risk that can be reduced or eliminated through diversification, which involves spreading investments across various assets to reduce exposure to any single risk.
Unique Risk
Unique Risk, also known as unsystematic risk, refers to the risk associated with a specific company or industry that can be reduced through diversification.
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.
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