What Is Market Risk?

Patrick Curtis

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Patrick Curtis WSO Editorial Board

Expertise:Investment Banking | Private Equity

Market risk is the risk an investor accepts when holding any asset; the risk that changes in the market will cause the asset to fluctuate in value. This risk is completely unavoidable and cannot be reduced by diversification.

The beta of an asset indicates it's correlation with the market, so the only way to reduce exposure to market risk is to choose stocks with low betas, although this will in turn reduce any gains in a market boom.

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Patrick Curtisis a member ofWSO Editorial Board这有助于确保在华尔街绿洲上的顶级文章中内容的准确性。万博app足彩下载他在罗斯柴尔德(Rothschild)和沃万博app网页版顿商学院(Wharton Business School)的MBA上拥有在罗斯柴尔德(Rothschild)的投资银行业务和私募股权方面的经验。他还是华尔街绿洲的创始人兼现任首席执行官,此内容最初是由成员创建的万博app足彩下载wallstreetoasis.comand has evolved with the help of our mentors.