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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.

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.

risk

see UNCERTAINTY AND RISK.

risk

Uncertainty regarding the possibility of loss.

References in periodicals archive ?

The redesign of the circuit breakers should take this added resiliency into account, or else the circuit breakers themselves run the risk of becoming disruptive.

Statement by Susan M. Phillips, Member, Board of Governors of the Federal Reserve System, before the Subcommittee on Securities of the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, January 29, 1998

However, many camps overlook this issue and run the risk of being incompletely reimbursed for damages under their insurance policies.

Insuring your camp's buildings and contents

While this case is charming and inspiring (a TV movie is planned) the sad fact is that from coast to coast, homeowners who choose to deviate from the conventional look - well-trimmed lawns, clipped boxhedges and annuals lined up neatly in rows - run the risk of being loathed by neighbors, cited, and fined by their communities.

In defense of weeds

If they use fewer, residents run the risk of skin breakdown needing treatment.

Incontinence products: "cost-effectiveness" means more than just "costs." (nursing homes)

And, by conflating maleness and femaleness without a corresponding cultural revolution which extols virtues such as pacifism and nurturance, normally associated with women and devalued thereby, we run the risk of allowing hegemonic masculinity, based on the foregrounding of power and domination, to assume primacy.

Sexual Visions: Images of Gender in Science and Medicine Between the Eighteenth and Twentieth Centuries

And will one -- or more -- governments decide to run the risk of testing Washington's resolve not to provide additional rescue efforts?

The mess in Mexico

"It's a big topic, a lot of the refs are in agreement - if you go in a little bit recklessly you run the risk of a red card.

Huth's sending-off split Potters - O'Shea

3pm REEBOK STADIUM BOLTON v NEWCASTLE BOLTON boss Owen Coyle believes Newcastle run the risk of losing their manager Chris Hughton if his contract situation is not resolved quickly.

Hughton may fly Magpies nest - Coyle

CHELSEA v A MADRID STAMFORD BRIDGE, WEDNESDAY, LIVE ON ITV1, KICK-OFF 7.45pm JOHN TERRY will run the risk of injury and put his World Cup place in jeopardy rather than pull out of any tackle.

I won't duck a tackle; CHAMPIONS LEAGUE: BIG 4 GET SERIOUS: SAYS CHELSEA'S JOHN TERRY

They run the risk of an instant fine if they are seen, and highways staff are determined to catch them.

Road litter blitz

Even though Brazil is not on the bird-flu map, it has always run the risk of birds arriving sick in the country, and psychological factors over the illness affect exporting companies.

Super bird: posting record profits, food giant Sadia nevertheless looks abroad to stretch its wings

His installation becomes a critique of any art that refuses to run the risk of traveling through time and space, of transport.