What is the difference between specific risk and market nsk? Acronyms Calculator A Specific risk is the risk of a particular company being unable to make interest payments, while market risk measures the extent to which possible returns may differ from the expected return. Specific risk is of concern only to investors who invest in stocks In one market, while market risk is of concern to investors who invest in multiple markets and countries. Specific risk applies to investments in index funds within a diversified portiolio, while market risk applies to the volatility of a particular stock. D Specific risk is a distinct risk which can be reduced through diversification, while market risk is systematic and cannot be eliminated