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6 December, 17:26

The risk of an investment losing value due to increases in the cost of living is referred to as:

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  1. 6 December, 18:50
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    The answer is the market risk. There are plenty of reasons for the change of market and are mostly financial reasons like the recession, market decisions. It includes the changes in the cost of living which can affect a business and loss its value.

    An investor then looses from a business when this is experienced. To measure this kind of risk management uses the risk management method. Under the market risk is interest rate risk, equity risk, currency risk and commodity risk.
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