risk

(redirected from risky)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.

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 ?

Not sleeping much at the weekend, when teenagers may be out drinking and socialising, led to the biggest increase in risky sex, more than twice as high compared to those who slept well all week.

Weekend lie-ins key to teens being less risky; DR MIRIAM STOPPARD Helping to keep you fit and healthy miriam@mirror.co.uk @MiriamStoppard

Teenagers also had a higher risky driving rate under favorable conditions (daytime or dry roads) compared to less-favorable conditions (nighttime or wet roads).

TEEN RISK HIGHEST AFTER FIRST GETTING LICENSE

To rank risky road segments, Lytx divided the nation's roads into half-mile square segments that its customers pass through every day.

Survey Central Pa. has one of riskiest highway stretches in U.S

They also were asked to determine which of 21 driving behaviors should be classified as risky and which should be considered low risk.

Visits to Intensive Care Unit and Morgue May Boost Teens' Driver Education

Speaking on condition of anonymity, a central bank official familiar with the policy said banks had long been mandated by regulators to recognize risky assets - like loans that are in danger or going bad or bonds whose issuers may default - but noted that accounting practices prior to this new policy required actual evidence of default before classifying them as bad assets.

Banks told to flag risky loans even before these go bad

He said that "our office is conducting regular symposium even in the remote areas and we campaign to encourage pregnant mothers in risky pregnancies to give birth in the hospital."

Mothers with risky pregnancies urged to give birth in the hospital

We hypothesised that substance use in WSW should be predicted by depression, risky sexual behaviours and ADHD severity.

DEPRESSION, ATTENTION DEFICIT HYPERACTIVITY DISORDER (ADHD) AND RISKY SEXUAL BEHAVIOUR AS PREDICTORS OF SUBSTANCE USE AMONG WOMEN IN SEX WORK (WSW). (Original Research Article)

- An increase in the risky assets, measured by risky assets to adjusted equity ratio, to above 90%

Fitch Affirms FTLife's IFS Rating at 'A-'; Outlook Stable

The Technical Committee of the SBCA comprising construction experts and engineers has observed that living in dangerous building is risky in normal situation while in case of rain, the water reaches to the inside turns its structure further weak and it can be collapsed accidently.

Dangerous declared buildings become more risky in rain: SBCA

The GDT [sup][18] was used to assess the tendencies of participants to make risky decisions.

Decision-making Impairments in Primary Angle-closure Glaucoma Patients

Actors Sidharth Malhotra and Jacqueline Fernandez, who are paired together in a film for the first time, on Monday revealed that their upcoming movie, Reload , has been renamed A Gentleman - Sunder, Susheel, Risky.

Sidharth Malhotra and Jacqueline Fernandez film renamed

Traditionally, in studies on risk taking the focus has been on the influence of individual-level variables on risky behaviors (Ben-Ari, Florian, & Mikulincer, 1999).

How social support style affects financial risk-taking behavior: a cross-cultural study

Full browser ?

CITE

Site: Follow: Share:

Open / Close