Systemic Risk / Market Risk

Market / systemic risk is a measure of how much of a loss an investor is facing while trading. The market risk is usually measured using the beta of the stock that is being held in his/her portfolio. Sometimes called “Systematic Risk,” it can happen for various reasons such as bad financial news or changes to the current rates. Because of the low-level of control investors have over this risk, portfolios generally can not be hedged against it.

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