Assertion: portfolio's risk | /r/HasProperty | systemic
Facets:
value: as
type: DEGREE
Source sentences:
text: Risk can be both undiversifiable or systemic, and diversifiable or unsystemic.
text: Specifically, diversification allows investors to reduce their exposure to what is referred to as unsystematic risk, which can be said to be the risk associated with a particular company or industry.﻿﻿ Investors are unable to diversify away systematic risk, such as the risk of an economic recession dragging down the entire stock market, but academic research in the area of modern portfolio theory has shown that a well-diversified equity portfolio can effectively reduce unsystematic risk to near-zero levels, while still maintaining the same expected return level a portfolio with excess risk would have.
text: As it is below 1, though near it, the portfolio can be said to be taking on as much systematic risk as the market.
text: The risks inherent in an individual company are unsystematic risks, meaning that they apply only to that company.
text: These risks are known as market risks, or systematic risks, and they can sweep through an entire market or segment of the market.
text: This risk is also known as unsystematic risk and is specific to a company, industry, market, economy, or country.