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Risk definition

We know it instinctively. It's a multi-headed beast that needs to be examined from a variety of angles.

Beginner

Risk is a general term used to describe the variability or dispersion of returns of an asset over a stated time period. It can be measured in a variety of ways; including, variance, standard deviation, beta, value at risk and semi-deviation, among many others.

Synonyms: variability, dispersion


Other Original Content

Quiz

Click box for answer.

The most common inputs to risk calculations are past observations. | True or False?

True

In a Sentence

Jim:  When you started this firm, how did you connect with clients on the topic of risk ?
Bev:  I asked them to define it.

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Keywords:
risk
variability
dispersion
variance
investment
stocks
bonds
investment
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