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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 ?
the subjective utility ascribed by individual investors to the risky portfolio).
The survey, based on responses from 1,000 drivers, showed that risky overtaking was most common among male and young drivers, with 21% of men and 39% of 17 to 24-year-olds admitting doing so when they were not sure the road ahead was clear.
Ms Casey had highlighted and praised the work of Risky Business and said staff had been ignored and even harassed for highlighting 'uncomfortable truths' about abusers.
Our experimental results suggest that when borrowers are required to make joint liability payments, independent of their project status, risky borrowers will offer sufficiently large side payments to attract safe partners, and form heterogeneous JLTs.
in engagement in risky behaviors and On the other hand role of deterministic thinking as an important factor in emotional cognitive problems so The key question will be whether deterministic thinking can be increased involvement with risky behaviors in adolescents?
Other studies have also identified factors that ameliorate engagement in risky sexual behaviours.
options allow her to benefit from the upside of a risky decision without
All trap draws seem to come alike to the selection which could be key as, while Lil Risky did win a couple of times from the inside berth he occupies this evening early in his career, his last three attempts from red at Romford have resulted in defeat.
In this paper, we study the effect of selection into simple auction markets for risky and ambiguous prospects on market prices and market sizes in two experiments.
Tanzania's Minister for Finance Dr William Mgimwa has warned members of the newly launched board of directors for the Parastatal Pensions Fund (PPF) against the investment of members' contributions in risky projects.
By contrast, the highest number of female risky drinkers are aged 16-24.
Levels of risky sexual behavior among men and women initiating antiretroviral therapy (ART) generally remained below baseline values during a three-year study in Uganda.