fundamentals

risk

The possibility of losing money or not achieving expected financial returns on an investment.

Example

"Higher potential returns almost always come with higher risk."

💡 Memory Tip

RISK is the flip side of reward. No risk, no reward — but risk means you could lose.

Etymology

From Italian 'risco' or Portuguese 'risco' meaning 'danger' — the danger of loss.

Common Misspellings

rishriksriskkrrisk

Related Terms

volatilitydiversificationhedging

See Also

reward

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