InvestorWords.com
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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Featured Tip
8 Tips to Investing SuccessfullyAccording to Charlie Munger, here are the essential considerations for successful investing:
1. Risk: measure it, avoid it if possible, have a margin of safety, and limit downside.
2. Inde ... Read more
1. Risk: measure it, avoid it if possible, have a margin of safety, and limit downside.
2. Inde ... Read more
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