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Apr 30, 2004

Risky business?

Skittish investors unnerved by today's world events shouldn't be in the market

Investors define 'event risk' as the chance one takes when investing in a stock that certain news events might affect its value. There are various types of event risk. Some are permanent and inherent to investing, others are specific to a period in market history. Sector-related news, earnings and M&A talks, for example, are timeless and cyclical, while corporate governance scandals, accounting issues and terrorism are particular to today's market. The key for investors is to discern whether

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