In: Finance
Investment risk is a threat to overall investment that will diminish the value of the capital and diminish the rate of the return of the capital so I will be discussing a financial risk involved with my investment.
I have invested in stock market from my savings before unfolding of coronavirus and I have lost because of a systematic risk involved with the investment related to the market.
Systematic risk means that all such risks which are market risk and which cannot be completely eliminated, which can only be minimised through better allocation of resources and this can be highly unpredictable in nature as nobody has predicted Coronavirus to unfold like this.
this systematic risk has led to shrinkage in value of my investments and this is also lead to fear and financial risk that my investment would not be able to get to my actual allocated amount because the erosion is very high and it is a financial risk in nature which I was not able to eliminate.