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Risk is defined as a measure of the likelihood of loss or profit; the uncertainty of an investment’s rate of return.

Risk Explained

In finance, risk refers to the degree of uncertainty about the rate of return on an asset and the potential harm that could arise when financial returns are not what the investor expected. In general, as investment risks rise, investors seek higher returns to compensate them for taking on such risks.

Possible losses involving income or standard of living. The possibility of a loss from perils to people or property covered by insurance.

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