risk
Definition
The quantifiable likelihood of loss or less-than-expected returns. Examples: currency risk, inflation risk, principal risk, country risk, economic risk, mortgage risk, liquidity risk, market risk, opportunity risk, income risk, interest rate risk, prepayment risk, credit risk, unsystematic risk, call risk, business risk, counterparty risk, purchasing-power risk, event risk.
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Related Terms
actuary, aggressive, flier, conservative, hedge, alpha, asset allocation, at risk, risk-free return, Capital Asset Pricing Model, modern portfolio theory, capital market line, insurance, underwrite, cost of capital, diversification, efficient portfolio, equity risk premium, exposure, preservation of capital, sensitivity, legislative risk, benchmark risk, excluded risk, legal risk, operational risk, price risk, regulatory risk, reinvestment risk, systemic risk
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