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Risk |
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Risk Often defined as the standard deviation of the return on total investment. Degree of uncertainty of return on an asset. In context of asset pricing theory. See: Systematic risk.
Risk The uncertainty associated with any investment. That is, risk is the possibility that the actual return on an investment will be different from its expected return. A vitally important concept in finance is the idea that an investment that carries a higher risk has the potential of a higher return. For example, a zero-risk investment, such as a U.S. Treasury security, has a low rate of return, while a stock in a start-up has the potential to make an investor very wealthy, but also the potential to lose one's entire investment. Certain types of risk are easier to quantify than others. To the extent that risk is quantifiable, it is generally calculated as the standard deviation on an investment's average return. Risk. Risk is the possibility you'll lose money if an investment you make provides a disappointing return. All investments carry a certain level of risk, since investment return is not guaranteed. According to modern investment theory, the greater the risk you take in making an investment, the greater your return has the potential to be if the investment succeeds. For example, investing in a startup company carries substantial risk, since there is no guarantee that it will be profitable. But if it is, you're in a position to realize a greater gain than if you had invested a similar amount in an already established company. As a rule of thumb, if you are unwilling to take at least some investment risk, you are likely to limit your investment return. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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I finally
convinced the evaluation team that we must select the small business, as
we had put them in our competitive range, and therefore technically
should be able to do the work with acceptable risk. * Be able to help clients optimize their capital structure to
maximize returns at an acceptable risk tolerance, whether employing
traditional reinsurance or tapping a broadening array of other capital
sources. Another factor in defining acceptable risk levels relates to the
healthcare worker's specialty. |
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