risk investment & finance definition
The
possibility that a negative event will occur, such as the value of investments
declining below what was paid for them or investments losing all value.
Investors attempt to minimize risk through diversification.
See risk in Wall Street Words
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.
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