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