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Username: LuckyMan

Rating:
Guru Stars

Asked to: Heng Kim

Date Created: 04 Jun 2018
Category 28
Tag Financial
Question What is 'Market Risk'?
Advice from Guru
Hello LuckyMan,

Market risk is the possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets in which he or she is involved. Market risk, also called "systematic risk," cannot be eliminated through diversification, though it can be hedged against.

Sources of market risk include recessions, political turmoil, changes in interest rates, natural disasters and terrorist attacks.

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