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

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.

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.

risk

see UNCERTAINTY AND RISK.

risk

Uncertainty regarding the possibility of loss.

References in classic literature ?
Hunt feared that he might be several days in passing through this mountain defile, and run the risk of famine, he encamped in the neighborhood of the Indians, for the purpose of bartering with them for a horse.
And you would really run the risk for four thousand pounds?
Fogg," pursued Sir Francis, "you run the risk of having some difficulty about this worthy fellow's adventure at the pagoda.
She wanted a home, and didn't like to run the risk of losing him.
They can not afford to run the risk of having their hospitality abused by travelers, especially since travelers are such notorious scorners of honest behavior.
We were crouching in the forks of a tree on the edge of the open space, and we did not dare run the risk of being discovered.
Tiger and monkey as he may be, I am ready to run the risk of being introduced to him.
And we can't run the risk, after that nervous attack this morning, of subjecting Blanche to any further suspense.
He said to himself that if he had strength enough to get back to the spring he would stay there, and nothing should tempt him to run the risk of meeting Injun Joe again.
You coolly inform me that you daren't run the risk after all, and that you can't face the consequences on second thoughts.
He would hardly have taken the trouble to come all the way back, and run the risks he did, just to delay us a few days.
It's a big topic, a lot of the refs are in agreement - if you go in a little bit recklessly you run the risk of a red card.