Capital Markets Examiner School, Providence, RI

Market Risk

Market risk , sometimes referred to as systematic risk , involves factors that affect the overall economy or financial markets. It is the risk that an overall market will decline, bringing down the value of an individual investment in an entity regardless of that entity's growth, revenues, earnings, management, and capital structure.

Market Risk

There are four types of market risk – rates, equity, foreign exchange and commodities  Rate  Equity  Foreign Exchange  Commodities

Typically manifested in the investment portfolio through rate (i.e.price) risk