Market risk and Retail Prices Index: Difference between pages

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imported>Doug Williamson
(Align with qualifications material and link with Financial market risk page.)
 
imported>Doug Williamson
(Simplify final sentence.)
 
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1.  
''Inflation measures - UK.''


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.  
(RPI).  


Under the CAPM, only market risk is rewarded with additional returns.
Historically, RPI was the primary measure of consumer price inflation in the UK, calculated as the change from month to month in the prices of a standard basket of retail goods and services.  
 
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.


RPI was superseded as the primary measure in the UK by the Consumer Prices Index (CPI) and the (CPIH).




== See also ==
== See also ==
* [[Beta]]
* [[Consumer Prices Index]]
* [[Capital asset pricing model]]
* [[CPIH]]
* [[Financial market risk]]
* [[Limited Price Indexation]]
* [[Fractal markets hypothesis]]
* [[RPI]]
* [[Market price risk]]
* [[Market risk premium]]
* [[Risk]]
* [[Specific risk]]


[[Category:Manage_risks]]
[[Category:The_business_context]]

Revision as of 15:31, 24 April 2019

Inflation measures - UK.

(RPI).

Historically, RPI was the primary measure of consumer price inflation in the UK, calculated as the change from month to month in the prices of a standard basket of retail goods and services.

RPI was superseded as the primary measure in the UK by the Consumer Prices Index (CPI) and the (CPIH).


See also

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