exposure


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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.

exposure

see EXCHANGE RATE EXPOSURE.

exposure

(1) In finance,the amount that one may lose in an investment;the potential loss,which could be the capital invested plus any personal liability on loans in excess of the value of the property securing the loans. (2) In the market, the process of making a property known to the marketplace as available for sale or lease.(3) Physically, the direction of an improvement;for example,“The southern exposure of the house had all the best views.”

References in periodicals archive ?
Notably, the flexibility provided by forward/option hybrids such as range options and participating forwards was not as critical as correctly measuring exposure and calibrating the right hedge ratios.
Organophosphorus pesticide exposure of urban and suburban preschool children with organic and conventional diets.
In this federal multi-district welding fume litigation case, a consolidated proceeding of more than 6,000 welding fume claims, the defendants filed motions to exclude scientific studies and expert testimony purporting to establish that exposure to welding flames causes certain neurological disorders.
But exposure to other types of mold results in allergic reactions that are of less concern for a healthy individual.
Noting that semen exposure, a novel measure of condom failure, has advantages over traditional measures, the researchers nevertheless point out that further studies are needed "to determine which semen exposure levels, as measured by PSA, predict the risk for pregnancy and [sexually transmitted disease] and to compare the female condom with the male condom.
7% (10) suggests we might expect to correctly identify 93 negative serum samples in a population of 97 with no exposure to Q fever.
Whereas blood concentrations of dioxin in the general population are typically just 6 to 8 parts per trillion, the NIOSH assays retrospectively calculated an average of about 2,000 ppt in the 250 workers' serum during their job exposure.
A unique feature of the standard is an exposure goal program, which encourages employers to reduce exposures to below the action level.
Contagion risks are present in the course of routine activities, with potential for exposure increasing with the risk of injury.
OSHA requires that agencies have an exposure control plan, that employees be properly trained, and that the hepatitis B vaccine be provided to employees.
distributor with foreign exchange exposure may be far greater or far less than for an equivalent distributor with no such risk.