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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 ?
I shook my head: it required a degree of courage, excited as he was becoming, even to risk that mute sign of dissent.
If he risks his own person and limbs, father,'' said Rebecca, ``in doing such a dreadful battle, he can scarce be expected to spare his horse and armour.
He considered himself a hard-worked man, and claimed his fortune as the reward of his risks, his calculations, his anxieties, and the journeys he had to make at all seasons and at all hours.
That same cloud was being watched by two good friends in the ruined ditch below the city wall, for Bagheera and Kaa, knowing well how dangerous the Monkey-People were in large numbers, did not wish to run any risks.
I was now of an age to appreciate a quiet life, and I had run risks enough.
They were not allowed much time for their adieus; the Rainbow vanished, and the Princess, resolved to run all risks, started off at once, taking nothing with her but her dog, her cat, a sprig of myrtle, and the stone which the wife of Locrinos gave her.
I went in at all risks, and there we found Juliette.
This possibility had occurred to me again and again while I was making the machine; but then I had cheerfully accepted it as an unavoidable risk-- one of the risks a man has got to take
But you must be careful of yourself, dearest; you MUST look after yourself better; you MUST avoid all risks, lest you plunge your friends into desolation and despair.
The bearer of this letter will tell you, madame, what I dare not trust to pen and paper and the risks of transit.
Outfit of a trapper Risks to which he is subjected Partnership of trappers Enmity of Indians Distant smoke A country on fire Gun Greek Grand Rond Fine pastures Perplexities in a smoky country Conflagration of forests.
But if the word "missing" brings all hope to an end and settles the loss of the underwriters, the word "overdue" confirms the fears already born in many homes ashore, and opens the door of speculation in the market of risks.