risk

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Related to Specified risk materials: material risk, SRMS

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 periodicals archive ?
The step was taken only a month after Japan lifted its two-year-old ban on the condition that imports would be limited to meat from cattle aged up to 20 months with brain, spinal cords and other specified risk materials removed before shipment.
They examined the country's BSE surveillance systems, the controls on specified risk materials and animal feeds, and the system of cattle identification and registration.
certain specified risk materials from cattle 30 months of age or older (such as brain, skull and eyes),
This program will provide guaranteed loans for rural small businesses to develop the means to effectively destroy these specified risk materials from cattle while providing a bio-based source of energy," Veneman said.
specified risk materials (SRMs) that are known to harbor the highest concentrations of the infectious agent for BSE, such as the brain, skull, eyes, and spinal cord tissues of cattle at least 30 months of age, and a portion of the small intestine and tonsils from all cattle, regardless of their age or health; and
New targets require the MHS to strictly enforce the Over Thirty Month Rule in licensed plants hand in hand with its work to prevent Specified Risk Materials entering the food chain.

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