Legal Dictionary

Search results for: “market risk”

  • Market Risk

    Risk that cannot be diversified away. Related: systematic risk…

  • Market Price Of Risk

    A measure of the extra return, or risk premium, that investors demand to bear risk. The reward-to-risk ratio of the market portfolio….

  • Equilibrium Market Price Of Risk

    The slope of the capital market line (CML). Since the CML represents the return offered to compensate for a perceived level of risk, each point on the line is a balanced market condition, or equilibrium. The slope of the line determines the additional return needed to compensate for a unit […]

  • Risk Management

    Financial Definition of Risk Management Meaning of Risk Management The process of identifying and evaluating risks and selecting and managing techniques to adapt to risk exposures. Related Entries of Risk […]

  • Environmental Risk Prevention

    Hierarchical Display of Environmental risk prevention Environment > Environmental policy > Environmental policyBusiness And Competition > Management > Management > Risk managementBusiness And Competition > Management > Management > Crisis managementEnvironment > Natural environment […]

  • Risk Indexes

    Categories of risk used to calculate fundamental beta, including (1) market variability, (2) earnings variability, (3) low valuation, (4) immaturity and smallness, (5) growth orientation, and (6) financial risk….

  • Risk Indexes

    Categories of risk used to calculate fundamental beta, including (1) market variability, (2) earnings variability, (3) low valuation, (4) immaturity and smallness, (5) growth orientation, and (6) financial risk….

  • Price Risk

    The risk that the value of a security (or a portfolio) will decline in the future. Or, a type of mortgage-pipeline risk created in the production segment when loan terms are set for the borrower in advance of terms being set for secondary market sale. If the general level of rates rises during […]

  • Nonsystematic Risk

    Nonmarket or firm-specific risk factors that can be eliminated by diversification. Also called unique risk or diversifiable risk. Systematic risk refers to risk factors common to the entire economy….

  • Marketplace Price Efficiency

    The degree to which the prices of assets reflect the available marketplace information. Marketplace price efficiency is sometimes estimated as the difficulty faced by active management of earning a greater return than passive management would, after adjusting for the risk associated with a […]

  • Idiosyncratic Risk

    Unsystematic risk or risk that is uncorrelated to the overall market risk. In other words, the risk that is firm specific and can be diversified through holding a portfolio of stocks….

  • Foreign Market Beta

    A measure of foreign market risk that is derived from the capital asset pricing model….

  • Excess Return On The Market Portfolio

    The difference between the return on the market portfolio and the riskless rate….

  • Event Risk

    The risk that the ability of an issuer to make interest and principal payments will change because of rare, discontinuous, and very large, unanticipated changes in the market environment such as (1) a natural or industrial accident or some regulatory change or (2) a takeover or corporate […]

  • Capital Market Line (Cml)

    The line defined by every combination of the risk-free asset and the market portfolio….