risk (redirected from Preventive measure)

Risk

The chance that an investment's actual return will be different than expected. This includes the possibility of losing some or all of the original investment. It is usually measured using the historical returns or average returns for a specific investment.

Notes:

Higher risk means a greater opportunity for high returns... and a higher potential for loss.

See also: Beta, Country Risk, Eat Well, Sleep Well, Event Risk, Liquidity Risk, Market Exposure, Political Risk, Preservation of Capital, Price Risk, Reinvestment Risk, Return, Risk Averse, Risk Capital, Risk/Return Tradeoff, Systematic Risk, Unsystematic 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.

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risk

The variability of returns from an investment. The greater the variability (in dividend fluctuation or security price, for example), the greater the risk. Because investors are generally averse to risk, investments with greater inherent risk must promise higher expected yields.