Firm-specific risk, also known as diversifiable or idiosyncratic risk, is associated with events or factors that affect only one company or a specific industry and do not impact the entire market.

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 (2)

• firm-specific risk concept
• diversifiable risk concept