Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
1,507,373,747 visitors served.
forum mailing list For webmasters
?
New: Language forums
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Undiversifiable risk

    0.01 sec.
Undiversifiable risk

Undiversifiable risk
Risk that is carried by an entire class of assets and/or liabilities. Undiversifiable risk may apply to a certain country or industry, or to the entire global economy. It is impossible to reduce undiversifiable risk for the global economy (complete global shutdown is always theoretically possible), but one may mitigate other forms of undiversifiable risk by buying different kinds of securities and/or by buying in different industries. For example, oil companies all have the undiversifiable risk that they will drill up all the oil in the world; an investor may mitigate this risk by investing in both oil companies and companies having nothing to do with oil. Undiversifiable risk is also called systemic risk.


How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Email
Feedback
Add definition
? Mentioned in
 
Financial browser? ? Full browser
 
 
Financial Dictionary
?

Disclaimer | Privacy policy | Feedback | Copyright © 2009 Farlex, Inc.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Terms of Use.