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The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.
This refers to risk that will only affect a small segment of the market or a small number of assets.
Specific risk definition
This refers to risk that will only affect a small segment of the market or a small number of assets.
For example, a lawsuit taken against one company is not risk to the entire sector (market or systemic risk), just that particular company. Other examples include employee strikes or stricter regulations for a specific sector over others.