Archive for the ‘Market Risk’ Category
Market Risk – what does it comprise of ?
To quote from wikipedia http://en.wikipedia.org/wiki/Market_risk
Market risk is the risk that the value of an investment will decrease due to moves in market factors. The four standard market risk factors are:
- Equity risk, or the risk that stock prices will change.
- Interest rate risk, or the risk that interest rates will change.
- Currency risk, or the risk that foreign exchange rates will change.
- Commodity risk, or the risk that commodity prices (i.e. grains, metals, etc.) will change.
