2. Definitionof RISK
. Risk refers to the possibility of loss, damage, or injury. It is a
measure of the uncertainty associated with the realization of expected
outcomes, and it is a fundamental concept in finance, insurance, and
other industries. In financial contexts, risk often refers to the likelihood of
an investment's actual return being different than its expected return.
Definitionof RETURN
Return refers to the profit or loss generated from an investment
over a specified period of time. In finance, the return on an investment is
a measure of the profit or loss generated from that investment over a
specified period of time, typically expressed as a percentage of the
investment's initial cost.
3. Risk and return are two essential concepts in
finance and investment. Risk refers to the
possibility of losing money on an investment,
while return refers to the profit or gain that an
investment generates.
4. Concept of RETURN
The concept of return in finance refers to the gain or loss generated from an
investment over a specified period of time. Return is used as a performance measure to
evaluate the effectiveness of an investment, and it is a key consideration for investors when
making investment decisions.
Returns can be positive, meaning that the investment has generated a profit, or
negative, meaning that the investment has resulted in a loss.
The concept of return is central to finance, and it is used to compare different
investment opportunities, assess the performance of an investment portfolio, and make
investment decisions.