Unsystematic Risk

Unsystematic Risk See DIVERSIFIABLE RISK. As distinct from SYSTEMATIC RISK, it is risk peculiarly attached to an industry or a company. A poor tea crop, or a recession in the shipping industry, or a heavy excise duty imposed upon the refrigeration or automobile industry would be examples of unsystematic risk, just as a company run by persons friendly with a previous government are exposed to unsystematic risk if the new government, decides to settle scores.

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