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In finance, a specific risk is a risk that affects a very small number of assets. This is sometimes referred to as "unsystematic risk". An example would be news that is specific to either one stock or a small number of stocks, such as a sudden strike by the employees of a company you have shares in or a new governmental regulation affecting a particular group of companies.

Unlike systematic risk or market risk, specific risk can be diversified away.

 

This article is licensed under the GNU Free Documentation License. It uses material from the "Specific risk".

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