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lbvjy [14]
3 years ago
11

High risk & low risk of stock markets

Social Studies
1 answer:
Gnoma [55]3 years ago
4 0

Answer:

The most common types of market risk include interest rate risk, equity risk, commodity risk, and currency risk. Interest rate risk covers the volatility that may accompany interest rate fluctuations and is most relevant to fixed-income investments. Equity risk is the risk involved in the changing prices of stock investments, and commodity risk covers the changing prices of commodities such as crude oil and corn. Currency risk, or exchange-rate risk, arises from the change in the price of one currency in relation to another. This may affect investors holding assets in another country.

Low risk

Treasury securities are investments offered by the U.S. government. These securities include Treasury bills, notes and bonds. ... These low-risk assets are guaranteed by the full faith and credit of the U.S. government, which means you are virtually guaranteed to be repaid.

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