Volatility Risk in the Context of Capital Markets
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 in the Context of Capital Markets
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 in the Context of Capital Markets
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 in the Context of Capital Markets
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 in the Context of Capital Markets
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…