what is priced risk

in relation to icapm. it says “country specific risk should not be priced” this is from a research report on currency risk is “priced”

didn’t check the glossary: risk for which investors demand compensation to take.

Country specific risk is diversifiable and should not be included in discount rates. Currency risks are priced (included in valuation) by adjusting financials to real levels or adjusted nominal levels using inflation expectations… Prob not helpful, but i just got rocked on a question on that so it stood out in my head.