Investors can mitigate firm-specific risk by holding a broad portfolio of stocks from various industries, as the positive and negative performance of different firms tends to offset each other.

Authors

• Person: Not available Organization: Pressbooks
  Chapter 8 – Risk and Return – Fundamentals of Finance

Sources

• Chapter 8 – Risk and Return – Fundamentals of Finance pressbooks.pub Pressbooks via serper

Referenced by nodes (4)

• investor concept
• stocks concept
• firm-specific risk concept
• portfolio concept