Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

DIVERSIFIABLE RISK Definition & Legal Meaning

Definition & Citations:

A RISK that is unique to a company, ASSET, or market, meaning that it can be reduced or eliminated by holding a PORTFOLIO of assets that are uncorrelated. Also known as IDIOSYNCRATIC RISK, UNSYSTEMATIC RISK. See also DIVERSIFICATION, NONDIVERSIFIABLE RISK.

Disclaimer

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.