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Results tagged with risk
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user 36938
Risk is the potential that a chosen action or activity (including the choice of inaction) will lead to a loss (an undesirable outcome). The notion implies that a choice having an influence on the outcome sometimes exists (or existed). Potential losses themselves may also be called "risks". Any human endeavor carries some risk, but some are much more risky than others.
1
vote
How do you decide on your risk tolerance?
In addition to what quid said, I think your risk tolerance should depend on how likely you are to need the funds in the near future. … high risk (depending on whether you think you'll need some of it in medium or long term)
The idea here is that if you invest say in stocks (high risk) then the value of your position could drop significantly …
- 798
3
votes
Accepted
How can risk-reward relationship exist, since the losses due to the risk should offset the r...
Risk in finance is defined as standard deviation of returns. This is a measure of size of your returns, both negative and positive. … In this way you are compensated by the market for taking on more risk. …
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