Category: Finance

Sovereign risk, also known as country risk, is the risk that arises from investing in a particular country due to political or economic factors that could affect the value of…

Volatility risk, also known as price risk, refers to the potential for the value of an investment to fluctuate unpredictably due to changes in market conditions or other factors. This…

Non-systematic risk, also known as unsystematic risk or specific risk, is the risk that is specific to a particular company or industry and is not related to overall market movements.…

Systematic risk, also known as market risk, refers to the risk inherent to the entire market or a specific market segment. This type of risk is caused by external factors…

Reinvestment risk is the risk that the proceeds from an investment will be reinvested at a lower interest rate or yield than the original investment. It is a type of…

Inflation risk is the risk that rising inflation will erode the purchasing power of an investor’s assets in the capital market over time. This risk is particularly relevant for fixed-income…

Interest rate risk is the risk that changes in interest rates will affect the value of investments in the capital markets. This risk is particularly relevant for fixed-income investments such…

Currency risk, also known as exchange rate risk, is the risk that an investment’s value will decline due to changes in currency exchange rates. This risk is particularly relevant in…

Political risk refers to the risk of financial losses that result from political events or instability in a country. These events can range from government policy changes, election outcomes, civil…

Credit risk refers to the risk of loss that investors may face due to the default or non-performance of a borrower. In the capital market, credit risk can arise when…