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© 2026 Luis Nunez ·
Terms
ARSENAL > Idiosyncratic risk
Idiosyncratic risk
Investing
Definition
Same as single-stock or firm-specific risk. Variation in returns NOT explained by market factors. Goes to zero in a fully diversified portfolio (left only with systematic / market risk).
Related investing terms
Alpha
Asset allocation
Beta
CAGR
Compound interest
Diversification
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