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Investment Risk

   Also found in: Wikipedia 0.01 sec.
Investment Risk
Uncertainty about the future benefits to be realized from an investment.

Investment Risk
The risk that an investment will result in a loss. Nearly all investments have some investment risk: a stock may decline; a bond may default, and the underlying asset of a derivative may not behave in a certain way. See also: Return.


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The more financially strong a company is the lower the rate they may offer on the bond, but equally the investment risk would be lower.
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