What is market risk? 2003-12-17 12:07 Updated Source: Xinzhi.com
The so-called market risk is the investment loss caused by fund net value or price will fluctuate due to the market price of investment targets. The price of the securities market fluctuates frequently, it is difficult to expect, especially when the stock price is time, it is unpredictable. Due to a lot of changes, it is often more occasionally happening. Therefore, even if it is a company itself, it is also difficult. Control, the shorter time, the more difficult to touch. In this case, there is a risk of losing capital.
The most common method of measuring market risk is to use the "β" coefficient. The β value of the overall securities market is 1. If the risk of certain securities is consistent with the risk of the entire securities market, the β value of the securities is equal to 1, if a certain securities are more than 1, the risk of its risk The degree greater than the risk level of the entire securities market, if a certain securities beta value is less than 1, indicating the risk level of the risk of the entire securities market.
Article Source: Xinyi Net
