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 ?
If these words had been spoken by some easy, self-indulgent exhorter, from whose mouth they might have come merely as pious and rhetorical flourish, proper to be used to people in distress, perhaps they might not have had much effect; but coming from one who daily and calmly risked fine and imprisonment for the cause of God and man, they had a weight that could not but be felt, and both the poor, desolate fugitives found calmness and strength breathing into them from it.
It was by his advice that my father risked most of his property in the speculation that ruined him.
Nothing was needed but this; the wretched man, after loading wretched me with his gold and silver chains for years, had risked his life to come to me, and I held it there in my keeping
The royal blood of our Saxon kings shall not be spilt while mine beats in my veins; nor shall one hair fall from the head of the kind knave who risked himself for his master, if Cedric's peril can prevent it.