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on September 29th 2008 that DJ IA had a record-breaking drop of 777.68 with a close...

on September 29th 2008 that DJ IA had a record-breaking drop of 777.68 with a close at 10365 .45 the djia a market law of 6404 3.27 on March 6th 2009 having lost over 54% of its value since the October 9 2007 high.Individual who had invested in the stock market at this time were exposed to what type of risk
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In the given case, the risk to which investors were exposed would be "Market or Systemmatic Risk", a risk which cannot be diversified by holding an investment portfolio as it affects the whole/entire market. In other words, such a risk cannot be avoided. A drop of 777.68 points would have affected all the stocks in the market. So, irrespective of the quality of stocks and nature of industries in which such investments have been made, all the investors (small or large) suffered a loss because of the decline. Such risks include interest rate risk, sociopolitical risk, country risk, currency risk and so on which are not specific to any industry/company.

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