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asset risk

An asset risk is the measure of an asset's default potential or market value fluctuation.

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For example, assume a firm's investment portfolio includes grain futures purchased on the Chicago Board of Trade. The asset risk is the risk associated with the overall robustness of the grain futures market and the default potential of the investment.

Related Terms

A default is a failure to perform a legal or contractual duty. More specifically, a default is the...

Market risk is the exposure to uncertainty due to changes in rate or market price of an invested...