Nondiversifiable risk
Nondiversifiable risk is a risk that affects the entire economy or large numbers of persons or groups within the economy, which cannot be reduced or eliminated by diversification. Nondiversifiable risk also called systematic risk or fundamental risk.
Category: Banking & Finance
Previous: ← Noncancellable
Next: Nonforfeiture law →
More from this Section
- Revolving credit agreement
Revolving credit agreement is a commercial bank’s binding promise that the money will ... - Weak-form efficient
Weak-form efficient— description of foreign exchange markets, implying that all historical ... - “Dirty” float
“Dirty” float refers to a system of floating (i.e., market-determined) exchange rates ... - Revolving credit line
Revolving credit line is a financing arrangement that allows a business customer to borrow ... - Cross-hedging
Cross-hedging— hedging an open position in one currency with a hedge on another currency ...