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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 ?
It's too risky to attack them by oneself, and if we put it off till another day one of the big guerrilla detachments will snatch the prey from under our noses," thought Denisov, continually peering forward, hoping to see a messenger from Dolokhov.
You see, my dear sir," Da Souza was saying, "this little concession of yours is, after all, a very risky business.
It was a little risky, and the means were very crude.
As he had pyramided in Dawson City, he now pyramided in Oakland; but he did it with the knowledge that it was a stable enterprise rather than a risky placer-mining boom.
Well, Marilla, I'll just tell you plain that I think you're doing a mighty foolish thing--a risky thing, that's what.
But love like his, though it may drive one into risky folly by the proud consciousness of its own strength, has a sagacity of its own.
He had, as he informed me proudly, managed to nurse Kurtz through two illnesses (he alluded to it as you would to some risky feat), but as a rule Kurtz wandered alone, far in the depths of the forest.
To anyone but Tarzan of the Apes it might have seemed rather a risky plan, and perhaps it did even to him; but Tarzan rather liked things that contained a considerable element of danger.
And when he put the wheel hard over and the Ghost's bow swung off, there was nothing for the hunters to do but obey and make the best of a risky chance.
I simply haven't the nerve to do anything so risky.
No young lady in Miss Verinder's position could manage such a risky matter as that by herself.
Remember, Ishmael, 'twill be a risky job, and one of small profit