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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 periodicals archive ?
Christopher Risker, "Frederick Taylor's Use of the Baseball Team Metaphor: A Historical Perspective on Scientific Management and Baseball," NINE: A Journal of Baseball History and Social Policy Perspectives 4:1 (1995): pp.
As opposed to the results of Chalmers, Dann, and Harford mentioned above, Boyer and Stern (2014) an show that insurers demand higher premiums before the IPO to firms that are risker after the IPO.
Screwfix's new Rugby store manager Amanda Risker said: "We've created 13 brand new vacancies and have employed local people from around the Rugby area.
Results: J King (Sunderland) SKILLS A Risker (Middlebeck), A Lawson (Sunderland) LSPLIT J Fernival (Lambton Street), L Nelson (Sunderland) LSPLIT J Farrell (High Fell), J Hamilton (Houghton) WPTSUN A Griffiths (Scarborough), J Purdy (Sunderland) LPTSUN H Condren (Aycliffe), J Hassan (Sunderland) WSPLIT T Dixon (Houghton), M Stewart (Sunderland) WSPLIT S Robinson (Bishop Auckland), T Waters (Sunderland) WPTSUN T Wilkinson (Forest Hall), S Pattison (Sunderland) WSPLIT D O'Toole (Scarborough).
According to a 2014 study presented by the American Sociological Association, women may be more anxious in certain workplace situations because the circumstances are risker for women than they are for men.
For att minimera dessa risker diskuterades analysen regelbundet mellan forskarna och resultatet jamfordes i slutskedet med ursprungsmaterialet.
Bar owner Barry Risker, aged 62, said Whisker was lighting up cigarette after cigarette.
At the very least he's a low risker for the back-to-lay merchants as I'm far more convinced by him than Wainwright.
A study of 190,000 people showed that those who ate a large amount of processed meat products had a 67 per cent greater risker of getting cancer of the pancreas.
Foreningar som entreprenorer - mojligheter, begransningar och risker.
Higher returns induce depositors to make risker deposits, given the basic premise that an individual's utility function may be plotted as a tradeoff between risk and the rate of return.