Financial risk
The chance an investment returns less than expected, or loses value.
Definition
The chance an investment returns less than expected, or loses value.
Why it matters
Measuring risk means knowing how much you can lose and how far results can stray from average: without it, a return means nothing.
How to read it in the news
A risk measure is always read with its horizon (day, month, year) and over a period long enough to include crises.
Notitia newsroom · education, not investment advice.