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market risk

   Also found in: Wikipedia 0.12 sec.
Market Risk
The day-to-day potential for an investor to experience losses from fluctuations in securities prices. This risk cannot be diversified away. Also referred to as "systematic risk".

Notes:
The beta of a stock is a measure of how much market risk a stock faces.

Market risk
Risk that cannot be diversified away. Related: Systematic risk
market risk
1. The risk that because general market pressures will cause the value of an investment to fluctuate, it may be necessary to liquidate a position during a down period in the cycle. Market risk is highest for securities with above-average price volatility and lowest for stable securities such as Treasury bills. Market risk is of little consequence to a person who purchases securities with the intention of holding them for long periods.
2. See systematic risk.
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