exposure


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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.

exposure

see EXCHANGE RATE EXPOSURE.

exposure

(1) In finance,the amount that one may lose in an investment;the potential loss,which could be the capital invested plus any personal liability on loans in excess of the value of the property securing the loans. (2) In the market, the process of making a property known to the marketplace as available for sale or lease.(3) Physically, the direction of an improvement;for example,“The southern exposure of the house had all the best views.”

References in classic literature ?
Nobbler came and lay down on the thwart beside me, his back against my leg, and I sat staring in dumb misery at the girl, knowing in my heart of hearts that she might die before morning came, for what with the shock and exposure, she had already gone through enough to kill almost any woman.
You will die of exposure if you are not warmed, and Nobs and I are the only means we can command for furnishing warmth.
And it may be lawfully used for this purpose--if he can reconcile it to his conscience, and to the mercy due to the memory of the dead, to permit the public exposure of the letter in Court.
Every hybridizer knows how unfavourable exposure to wet is to the fertilisation of a flower, yet what a multitude of flowers have their anthers and stigmas fully exposed to the weather
The prospect of an exposure may bring him to terms when nothing else will.
This man was Gashford, who, bruised by his late fall, and hurt in a much greater degree by the indignity he had undergone, and the exposure of which he had been the victim, limped up and down, breathing curses and threats of vengeance.
In addition to the pain and delay attendant on a broken limb, his exposure to the wet and cold had brought on fever and ague: which hung about him for many weeks, and reduced him sadly.
And if I had had assistance, I see no good that I should have done, except leading to my own exposure, and an unavoidable statement of the manner in which I have hushed up this business.
The records in our newspapers, the late exposure by THE LANCET, and the common sense and senses of common people, furnish too abundant evidence against both defences.
I have no doubt of it," returned the barber; "but I do not wonder so much at the madness of the knight as at the simplicity of the squire, who has such a firm belief in all that about the island, that I suppose all the exposures that could be imagined would not get it out of his head.
The integration stage--when the company connects with partners, suppliers and vendors but still doesn't sell products or services directly over the Internet--marks an increase in property exposure, since loss of Internet service could result in significant business disruption.