Market risk
Market risk is a risk that part of a security's total risk that cannot be eliminated by diversification; measured by the beta coefficient.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Market risk. That part of a security's total risk that cannot be eliminated by diversification; measured by the beta coefficient.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Market risk. The risk that remains in a portfolio after diversification has eliminated all company-specific risk. This risk is also known as nondiversifiable or systematic or beta risk.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
