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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 ?

Table 2 provides the same information for RISKTAKER. Although the age spans are identical for generations and cohorts in the two tables, the number of observations in each cell differs because generations and cohorts were determined by the age of the household head in Table 1, but by the age of the survey respondent in Table 2.

Financial risk taking by age and birth cohort

Does the company need an aggressive Risktaker, or should it seek another merger partner?

Where are the leaders? The top spots at America's corporations are being vacated in droves as leaders are fired or resign under pressure. A former GE corporate strategist says what's needed is the right leader for the right situation at the right time

Nordgren (2006), progressive Swedish educators observed 14 Florida elementary schools and discovered that students who developed their own learning were required to be both creative and risktakers. Taking responsibility for one's own learning (Dewey, 1938), allows for deepened engagement and ownership in the process as well as the product.

Rubrics, rules, requirements: what about risk?

What about those who resist the pressure to license--the risktakers

Risk aversion and rights accretion in intellectual property law

and University of the Philippines Institute for Small-Scale Industries (1998), Dreamers, Doers, Risktakers: Entrepreneurial Case Stories, Philippines: SERDEF.

Small-scale business enterprises in the Philippines: survey and empirical analysis

Overall, research findings suggest that, on the aggregate, entrepreneurs are moderate risktakers but significantly differ from managers or the general public (Brockhaus, 1982; Low & Macmillan, 1988).

An investigation of sociological influences on the relationships between psychological traits and entrepreneurial orientation of used car entrepreneurs

RADIOHEAD, SECC, Glasgow, November 30*** THESE ingenious inventors and risktakers were confident enough to parade their latest album, Hail To The Thief.

MAIL MUSIC: Thom's guys have all the pluck

This argument, even if it makes a crucial distinction between different agents as risktakers and even if it is, as I believe it to be, true, nonetheless does not suffice in fulfilling the stern challenge which has been issued.

From discipline to insecurity in work: Illegible technologies of the self in "the new economy"

He remarks, "Neo-managerialism fosters the idea that public managers are (and should be) self-interested, opportunistic innovators and risktakers who exploit information and situations to produce radical change." In large measure, of course, this is the same chimera we have already seen.

Danger, Chimeras Ahead: Comment on Terry

Indigenous merchants, commercially active individuals and groups, and financially able risktakers are encouraged to pursue their largely individualized activities.

Development Success in Asia Pacific

To catch the Ninth Wave, we must reaffirm our desires to become high-level risktakers and be ready, so that when the wave approaches its peak we may be able to catch it and ride it all the way to shore -- to our destiny.

Sharing craft knowledge: the soul of principal peer assessment

Successful building development firms must be risktakers, seizing opportunities wherever they arise, whenever they arise.