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1. Localized Impact: This risk is specific to a company or sector and does not necessarily affect the broader market.
2. Diversifiable: By holding a ...
Unsystematic risk, or specific risk, is the uncertainty tied to a specific company, sector, or industry. Unlike systematic risk, it does not affect th...
It arises from factors such as economic shifts, political events, global crises, or changes in monetary policy
Systematic risk, often referred to as market risk, is the inherent risk affecting the entire market or a broad segment of the financial system. I
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