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Risk Asset Revaluation

Definition

Risk asset revaluation describes a broad adjustment in the perceived value of assets considered to carry higher risk. This process typically occurs during periods of significant economic or market shifts, leading investors to reassess the appropriate pricing for assets like equities, commodities, and cryptocurrencies. It can result in either an upward or downward adjustment based on changing macroeconomic conditions, interest rate expectations, or geopolitical events. The revaluation reflects a recalibration of risk premiums and future growth prospects.