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 periodicals archive ?
He said that the preventive measure campaign covers 25,301 units of City, 7,752 units of Jazz, 19,782 units of Civic, 12,730 units of CR-V and 2 units of Insight Vehicles which are affected by this preventive measure campaign in the Philippines.
Assessments of nutritional status, hydration, and respiratory function via lab values are also important preventive measures, because they provide crucial insight into residents' ability to fend off infection.
However, operatives learned that the suspect intended to break the preventive measure in order to avoid the criminal prosecution.
The preventive measures include awareness campaign, spray at possible breeding of dengue larva and its growth.
Brigadier Al Sayegh said it was a minor fire and people were evacuated from the hotel as a preventive measure.
ISLAMABAD -- Chairman Capital Development Authority (CDA) Maroof Afzal Sunday directed the authority's formations to take all possible preventive measure to overcome threats of dengue virus in federal capital.
Federal agencies won't reimburse for an expensive preventive measure but you can be sure that some sophisticated new dressing will become reimbursable.
The rescue teams visited shops and residential areas to check and highlight breeding areas for dengue mosquitoes and preventive measure against it.
Islamabad -- The Chairman Capital Development Authority (CDA), Maroof Afzal has directed the concerned formations of the Authority to take all possible preventive measure to overcome anticipated threats of dengue virus in the Federal Capital.
In the mid-1980s, physicians began prescribing pentamidine or TMP/SMX - both of which are also used to treat established cases of Pneumocystis carinii pneumonia - for AIDS patients as a preventive measure.
In the mid-1980s, physicians began prescribing pentamidine or TMP/SMX -- both of which are also used to treat established cases of Pneumocystis carinii pneumonia -- for AIDS patients as a preventive measure.
He said that plenty of chilled drinks with a dash of salt is a good preventive measure.

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