Could you please explain the meaning or definition of EXPOSURE? Is " exposure" the other way to call " risk", or in other words, risk and exposure are used interchangeably or the same?
Broadly yes if you have exposure to an asset you are exposed to the price movement of the asset.
If we own $10m of Equities we might say i have “$10m exposure”
Risk - with standard deviation - often has a more precise defintion.
What is the risk of equityies = 15% pa std deviation
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