Match each macroeconomic scenario or market environment description on the left with the primary systematic risk factor it exemplifies on the right.
- An unexpected, sustained spike in the Consumer Price Index (CPI) that erodes the real value of fixed coupon payments over a multi-year horizon.Purchasing Power Risk
- A severe macroeconomic contraction causing broad-based equity valuation declines across all market sectors simultaneously.Market Risk
- An aggressive monetary tightening policy by the Federal Reserve resulting in a upward shift in benchmark yields and a drop in existing long-term bond prices.Interest Rate Risk
- A rapid appreciation of the U.S. Dollar that diminishes converted returns on unhedged equity holdings denominated in foreign currencies.Currency Risk
Cevap
Each scenario maps directly to its specific systematic risk subtype: CPI increases align with Purchasing Power Risk; market-wide equity declines align with Market Risk; central bank rate hikes driving down existing bond prices align with Interest Rate Risk; and foreign exchange shifts impacting converted overseas returns align with Currency Risk.
Systematic risks affect the entire financial system or broad asset classes and are non-diversifiable. CPI increases erode real purchasing power (Purchasing Power Risk). Broad market contractions depress equity prices universally (Market Risk). Central bank rate hikes cause existing fixed-income valuations to fall (Interest Rate Risk). Currency appreciation of the home currency reduces converted returns on international securities (Currency Risk).
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Anahtar Kavram
Identification and differentiation of systematic risk factors in financial markets