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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 ?
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.
Teenagers also had a higher risky driving rate under favorable conditions (daytime or dry roads) compared to less-favorable conditions (nighttime or wet roads).
To rank risky road segments, Lytx divided the nation's roads into half-mile square segments that its customers pass through every day.
They also were asked to determine which of 21 driving behaviors should be classified as risky and which should be considered low risk.
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.
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."
We hypothesised that substance use in WSW should be predicted by depression, risky sexual behaviours and ADHD severity.
- An increase in the risky assets, measured by risky assets to adjusted equity ratio, to above 90%
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.
The GDT [sup][18] was used to assess the tendencies of participants to make risky decisions.
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.
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).