Market risk: Difference between revisions
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imported>Doug Williamson (Broaden by linking with Fractal markets hypothesis page.) |
imported>Doug Williamson (Align with qualifications material and link with Financial market risk page.) |
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More generally, the risk of losses resulting from adverse changes in market prices or | More generally, the risk of losses or other adverse effects resulting from adverse changes in market prices or from unfavourable market conditions. | ||
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* [[Beta]] | * [[Beta]] | ||
* [[Capital asset pricing model]] | * [[Capital asset pricing model]] | ||
* [[Financial market risk]] | |||
* [[Fractal markets hypothesis]] | * [[Fractal markets hypothesis]] | ||
* [[Market price risk]] | * [[Market price risk]] | ||
Revision as of 14:32, 30 May 2015
1.
Market risk in the Capital Asset Pricing Model (CAPM) means the element of total risk which cannot be eliminated by holding a diversified portfolio of investments.
Under the CAPM, only market risk is rewarded with additional returns.
Market risk is often quantified by Beta, its designation in the CAPM.
Also known as Systematic risk or Non-diversifiable risk.
2.
More generally, the risk of losses or other adverse effects resulting from adverse changes in market prices or from unfavourable market conditions.
