The National Directory of Certified Public Accountants

Ask A CPA - Investments & Financial Planning

What Is Market Risk ?

In the most basic sense, risk can be defined as the chance of financial loss. The term risk is used interchangeable with uncertainty to refer to the variability of returns associated with a given asset. The more certain the return from an asset, the less variability and therefore the less the risk. Market risk is the chance you may lose money in a market decline.

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