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Finance Dictionary and Glossary of Investment Terms
The day to day potential for an investor to experience losses from fluctuations in securities prices.
Risk that cannot be diversified away. Related: Systematic risk
Risk which is common to an entire class of assets or liabilities. The value of investments may decline over a given time period simply because of economic changes or other events that impact large portions of the market. Asset allocation and diversification can protect against market risk because different portions of the market tend to underperform at different times. also called systematic risk.