The degree of risk that can be attributed to a market segment or the market as a whole. For example, a high rate of inflation can slow economic growth, impair consumer spending and stifle corporate profits, causing the broader market to decline. Market risk associated with one industry or sector can be reduced through sector diversification. Market risk associated with the market as whole, can be mitigated to some degree through asset allocation that includes multiple asset classes, such as bonds, stocks, Cash, and ownership of actual Commodities like gold and silver.
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