Specific risk

As unsystematic risk in the context of the Capital Asset Pricing Model (CAPM ) building financially scientific theories of some of the risk is known, which can be reduced through better diversification of investment portfolios.

To unsystematic risk include management errors, such as wrong product policy or high costs.

Within an industry, some risk components of the same, and by cross-industry diversification, the unsystematic risk can be almost completely eliminated.

• Capital Market Theory
• Financial risk