Explore BrainMass

Explore BrainMass

    Risk in investing in financial markets

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The media and / or government officials influence an investor's risk tolerance. What is an important risk in investing in the financial market?

    © BrainMass Inc. brainmass.com October 10, 2019, 8:31 am ad1c9bdddf

    Solution Preview

    There are a number of risks in investing in financial markets. Financial investments like stocks and bonds can be affected by Commodity Price Risk, Headline Risk, Rating Risk, Inflationary Risk, and Interest Rate Risk etc. We will discuss two of them here where media and government officials have a role to play: Headline Risk and Interest Rate Risk.

    1) Headline Risk: The risk that arises when stories in the media affect the ...

    Solution Summary

    Two risks - headline risk and interest rate risk - have been explained briefly.