What Does Asset Risk Mean?

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What does Asset Risk mean? Read on to discover the definition & meaning of the term Asset Risk - to help you better understand the language used in insurance policies.

Asset Risk

Asset Risk

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

We hope the you have a better understanding of the meaning of Asset Risk.

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