risk

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Related to Relative risk: absolute risk, Attributable risk

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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

risk

see UNCERTAINTY AND RISK.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

risk

Uncertainty regarding the possibility of loss.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The relative risk r and the odds ratio 9 satisfy one of the following conditions:
Thus, the book's central theorem states that for a > 0 and b > 0, "the relative risk aversion measure associated with an outcome variable is larger when the outcome variable is measured more inclusively or is less risky" (p.
In any case where a pharmaceutical agent creates an increased relative risk of an adverse event greater than 2, the plaintiff's attorney can definitively state from a scientific and epidemiological standpoint that the event was more likely than not caused by the agent.
When relative risk is near the critical value of 2.0, potential biases must be assessed more carefully.
The relative risk of stroke rose less steeply, but still substantially, among people who cited moderate depressive symptoms, Jonas and Mussolino report in the July/August PSYCHOSOMATIC MEDICINE.
In all models, the strength of effects is expressed in terms of relative risks. The interpretation of such relative risks depends on whether the independent variable is categorical or continuous.
"Whole body bone scanners can occupy entire exam rooms, cost more than $100,000, take up to 30 minutes to perform a single procedure, and give you less than a 2.0 relative risk for spine fracture prediction.
It is important to know the hazard class of the peroxide so you can determine the relative risk.
I find that both in 1900 and again in 1985-91, the relative risk of labor force nonparticipation increases for the excessively lean and obese.
Use of the measures of absolute and relative risk aversion, introduced by Arrow [1971!
It examines the following: * the annual projected after-tax cash flows the foundry will generate; * the cash flows discounted at an appropriate rate of return, taking into account the relative risk of not realizing the projected cash flow and the time value of encumbered funds; * the estimated residual value of the asset at the end of its remaining useful life; * the residual value converted to its present value equivalent; * the present value of the after-tax cash flow combined with the present value of the determined residual.