Exchange Currency

nondiversifiable 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 nondiversifiable risk because different portions of the market tend to underperform at different times. also called systematic risk or market risk.

Related information about nondiversifiable risk:
  1. What is nondiversifiable risk? definition and meaning
    Definition of nondiversifiable risk: Risk which is common to an entire class of assets or liabilities. The value of investments may decline over a given time period ...
     
  2. The Burden of the Nondiversifiable Risk of Entrepreneurship
    "The Burden of the Nondiversifiable Risk of Entrepreneurship," American Economic Review, American Economic Association, vol. 100(3), pages 1163-94, June.
     
  3. Nondiversifiable Risk - Financial Dictionary - The Free Dictionary
    Risk that cannot be eliminated by having a large portfolio of many assets. Systemic Risk. A risk that is carried by an entire class of assets and/or liabilities.
     
  4. nondiversifiable risk - FX Words
    A type of risk that is not dependent on the class of assets or liabilities,...
     
  5. The Burden of the Nondiversifiable Risk of Entrepreneurship
    The Burden of the Nondiversifiable Risk of. Entrepreneurship. By Robert E. Hall and Susan E. Woodward∗. Entrepreneurship is risky. We study the risk facing a ...
     
  6. Nondiversifiable risk - Bizterms.net
    Similar financial terms. Interest-rate risk on bonds. The price of a typical bond will change in the opposite direction from a change in interest rates. As interest ...
     
  7. Entrepreneurial Finance and Nondiversifiable Risk - Boston University
    markets model that explicitly incorporates the effects of nondiversifiable risk on the .... present value [APV] analysis) to account for nondiversifiable risk and ...
     
  8. Total Risk, Diversifiable Risk and Nondiversifiable Risk: A ...
    sification and the nondiversifiable risk is the risk which cannot be diversified ... and nondiversifiable risk measures as two complementary components of the ...