ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Market Risk. It is often called systematic risk. read more is the risk of an investment losing its value due to various economic events that can affect the entire market. The main types of market risk include: Equity Risk: This risk pertains to the investment in the shares.

Detailed explanation-2: -Risk is the chance that the value of an investment will decrease.

Detailed explanation-3: -What Is Risk? When you invest, you make choices about what to do with your financial assets. Risk is any uncertainty with respect to your investments that has the potential to negatively impact your financial welfare. For example, your investment value might rise or fall because of market conditions (market risk).

Detailed explanation-4: -Portfolio diversification is the process of selecting a variety of investments within each asset class, which can help those looking for how to minimize their investment risk. Diversification across asset classes may also help lessen the impact of major market swings on your portfolio.

Detailed explanation-5: -Risk is an important component in assessment of the prospects of an investment. Most investors while making an investment consider less risk as favorable. The lesser the investment risk, more lucrative is the investment. However, the thumb rule is the higher the risk, the better the return.