market risk
Potential that the target market for new goods or services is much less than originally projected
Market risk is the risk of financial loss that occurs due to changes in the market value of a specific asset or investment. It is also known as systematic risk and refers to the risk that is inherent in the entire market or an entire market segment rather than in any individual security or asset. This type of risk affects the value of all investments in the market.
Factors that contribute to market risk include economic changes, interest rate fluctuations, political instability, and any other factors that can affect the market as a whole. Investors can mitigate market risk by diversifying their portfolio by investing in multiple asset classes, such as stocks, bonds, and real estate, or by using hedging strategies such as options and futures. Additionally, investors can use risk management techniques such as stop-loss orders to limit their exposure to market risk.
More Answers:
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