How and what markets are risky to the companies and industry and why? Determine the performance of the companies and industry compared to market averages.

Market risk can impact companies/industries differently depending on what type of investment is made. Generally speaking, markets can be divided into three categories – equities (stocks), fixed income (bonds), and derivatives (options/futures). The three categories have their own pros and cons. For example, while stocks tend to carry a greater risk because of the potential to lose money but can also yield higher profits when successful, bonds are less volatile with lower returns.

In terms of performance, it’s important to compare how different companies within an industry are doing relative to overall market averages; this allows us to determine if a particular sector is outperforming or underperforming at any given time. For example, if we look at the S&P 500 index – we can see that tech stocks have been consistently outperforming other sectors recently which could indicate a shift towards a new wave of innovation amongst digital businesses. On the other hand, oil & gas has been lagging behind due to issues such as oversupply which has caused prices to remain low for some time now.

Overall, evaluating risk levels within specific markets is essential for assessing potential investments and understanding trends that may influence future performance; by looking at historical data and comparing it against current conditions – we can gain insights about how well certain industries are likely faring compared to others.