Undiversifiable Risk

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Definition: Undiversifiable Risk

Undiversifiable Risk
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Full Definition of Undiversifiable Risk

Risk which is common to an entire class of assets or liabilities. The value of investments may decline over a given time period simply because of economic changes or other events that impact large portions of the market. Asset allocation and diversification can protect against undiversifiable risk because different portions of the market tend to underperform at different times. also called systematic risk or market risk.

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https://payrollheaven.com/define/undiversifiable-risk/
Modern Language Association (MLA):
Undiversifiable Risk. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 18, 2024 https://payrollheaven.com/define/undiversifiable-risk/.
Chicago Manual of Style (CMS):
Undiversifiable Risk. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/undiversifiable-risk/ (accessed: April 18, 2024).
American Psychological Association (APA):
Undiversifiable Risk. PayrollHeaven.com. Retrieved April 18, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/undiversifiable-risk/

Definition Sources

Definitions for Undiversifiable Risk are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 17th November, 2021 | 0 Views.