Non-systematic risk directly encompasses interest rate risk, financial risk, and inflation risk for the market as a whole.

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Non-systematic risk, also known as unsystematic or idiosyncratic risk, refers to the risk that is unique to a specific company or industry, and does not include broad market risks such as interest rate risk, financial risk, and inflation risk, which are considered systematic risks.

Non-Systematic Risk Directly Encompasses Interest Rate Risk, Financial Risk, and Inflation