Market risk: Difference between revisions
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imported>Doug Williamson m (Category added 9/10/13) |
imported>Doug Williamson (Broaden by linking with Fractal markets hypothesis page.) |
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* [[Beta]] | * [[Beta]] | ||
* [[Capital asset pricing model]] | * [[Capital asset pricing model]] | ||
* [[Fractal markets hypothesis]] | |||
* [[Market price risk]] | * [[Market price risk]] | ||
* [[Market risk premium]] | * [[Market risk premium]] | ||
Revision as of 21:57, 30 November 2014
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.
