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Modeling Portfolios that Contain Risky Assets I: Risk and
Modeling Portfolios that Contain Risky Assets I: Risk and

... depositing it in a bank, and is a sure way to not make money. Depositing your cash into an FDIC insured bank account is the safest investment that you can make — the only risk of loss would be to an extreme national calamity. However, a bank account generally will yield a lower return on your invest ...
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... the remainder of the year in order to preserve the current year gains. This can be accomplished via index put options, which generate income only when the stocks in the portfolio fall in value. A more detailed analysis of this example is presented in section 4. In summary, reasonable assumptions ab ...
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Systemic risk

In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to risk associated with any one individual entity, group or component of a system, that can be contained therein without harming the entire system. It can be defined as ""financial system instability, potentially catastrophic, caused or exacerbated by idiosyncratic events or conditions in financial intermediaries"". It refers to the risks imposed by interlinkages and interdependencies in a system or market, where the failure of a single entity or cluster of entities can cause a cascading failure, which could potentially bankrupt or bring down the entire system or market. It is also sometimes erroneously referred to as ""systematic risk"".
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