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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.


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


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 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.


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


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.
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A lesson in both of the examples above is to understand, retain and build on the differences that led to the target's success and grasp how these components will operate with the additional risk and stress placed on a business from the acquisition.
Analysis by season showed that swimming in fresh water and contact with children aged 2-11 years who have diarrhea were significant risk factors only in the summer months and that an additional risk factor in the summer was drinking well water (OR 2.1).
The court found that the prison's use of unlicensed barbers to provide haircuts for inmates, and requiring inmates to share electric razors, did not place the inmates at a risk of serious or substantial harm absent any showing that the inmates were at any additional risk of contracting diseases.
The current literature indicates that exercise poses no additional risk to the development of back pain.
CT'S value will come in discriminating the nature of disease in people at intermediate risk, which Kondos says include all men over 45 and those women over 50 with at least one additional risk factor, such as high cholesterol.
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So the difference is all of 5 people, in a study of 600 -- a difference of about 1% so far, having the additional risk of getting the more serious viral resistance with the tenofovir.
Plak-Vac, from Trademark Medical, not only provides oral care, but also cleans the gums and oral cavity of bacteria, avoiding additional risk of systemic infection.
The model also spells out additional risk factors posed by a society indifferent to family risks, and ameliorating factors in a society providing help, protection, and better advancement.
"HIV patients can do well after transplantation and are at no additional risk for opportunistic infection or exacerbations of their HIV disease," said Fung.
"If Beringer had merged with Allied Domecq's Clos du Bois, or with privately held Kendall-Jackson [Wine Estates], or been acquired by Brown Forman (Fetzer, Korbel, Bolla), that type of consolidation would have meant additional risk for us," he says.

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