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Results tagged with risk
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user 62856
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.
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Risk free rate formula breakdown
In risk free rate formula below why is 1 added on numerator and denominator and the value is substracted by 1
Rf = (1+nominal risk free rate)/(1+inflation) -1 …
