Risk
Definition
Risk in the context of finance and the financial manager involves the potential for loss or the chance that an investment's actual return will differ from the expected return. It is inherent in all financial decisions and investment activities.
Related terms
Return: The gain or loss on an investment over a specified period, representing success or failure in navigation through risks.
Investment: The allocation of resources, typically money, with the expectation of generating an income or profit, inherently tied to varying degrees of risk.
Portfolio Diversification: A risk management strategy involving investing in a variety of assets to reduce exposure to any single asset or risk
"Risk" appears in:
Subjects (2)
AP Macroeconomics
AP Psychology
Study guides (1)
Intro to Business - 1.1 The Nature of Business
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About Us
About Fiveable
Blog
Careers
Code of Conduct
Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Cram Events
Merch Shop
Crisis Text Line
Help Center
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.