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what is the difference between diversifiable risk and systematic risk? provide examples as appropriate.

what is the difference between diversifiable risk and systematic risk? provide examples as appropriate.

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diversifiable risk or unsystematic risk is firm specific risk that can be reduce or mitigate by diversification. this type of risk arise due to internal factor like, labor strike, lawsuit, regulatory actions, and loss of a key account. this type of risk arise within firm occasally.

Diversifiable risk is measure in term of standard deviation.

Systematic risk, also known as "market risk" or "un-diversifiable risk", is the uncertainty inherent to the entire market or entire market segment. Also, referred to as volatility, systematic risk consists of the day-to-day fluctuations in a stock's price.

Beta coefficient is measure of systematic risk.

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