diversifiable risk

Noun

 * 1)  An investment risk that can be mitigated by diversification of an asset portfolio.
 * 2) * 2004, Harvey E. Bines and Steve Thel, Investment Management Law and Regulation (Second Edition), Aspen Publishers, page 412:
 * The Comments certainly contemplate that, with respect to uncompensated, diversifiable risk, fiduciaries act with that objective in mind: “[M]ore than conservatism or a duty of caution,” the duty to diversify is a “warning” that a “central feature” of the prudence of risk-taking “ordinarily is the reduction of uncompensated risk through diversification.”
 * 1) * 2011, Fundamentals of Investing (Third Edition), Pearson, page 144:
 * The risk of an investment consists of two components: diversifiable and non-diversifiable risk. Diversifiable risk, sometimes called unsystematic risk, results from uncontrollable or random events that are company-specific, such as labour strikes, lawsuits and regulatory actions.
 * The risk of an investment consists of two components: diversifiable and non-diversifiable risk. Diversifiable risk, sometimes called unsystematic risk, results from uncontrollable or random events that are company-specific, such as labour strikes, lawsuits and regulatory actions.