Market price and Market risk: Difference between pages

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In free and developed markets, the price which market makers are currently quoting in the market for a commodity or for any other asset or financial instrument, or at which a deal has most recently been struck in the market.
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.


Usually, but not necessarily, quoted on the conventional basis for the market in question.
Also known as Systematic risk or Non-diversifiable risk.


2.
More generally, the risk of losses resulting from adverse changes in market prices or in general market conditions.


== See also ==
== See also ==
* [[Correction]]
* [[Beta]]
* [[Earnings yield]]
* [[Capital asset pricing model]]
* [[Fire sale]]
* [[Market price risk]]
* [[Market maker]]
* [[Market risk premium]]
* [[Market value]]
* [[Risk]]
* [[Marking to market]]
* [[Specific risk]]
* [[Price]]
* [[Quotation/Quote]]
 
* [[Value]]

Revision as of 14:20, 23 October 2012

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 resulting from adverse changes in market prices or in general market conditions.

See also


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