Risk

Business / Finance / Risk: Often defined as the standard deviation of the return on total investment. Degree of uncertainty of return on an asset. In context of asset pricing theory. See: Systematic risk.

Other Words for Risk

Risk Noun Synonyms: danger, peril, jeopardy, hazard, chance, gamble
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Risk-Reward Ratio

Business / Finance / Risk-Reward Ratio: Relationship of substantial reward corresponding to the amount of risk taken; mathematically represented by dividing the expected return by the standard deviation. MORE

Legislative Risk

Business / Finance / Legislative Risk: The risk that new or changed legislation will have a large positive or negative effect on an investment. MORE

Reinvestment Risk

Business / Finance / Reinvestment Risk: The risk that proceeds received in the future may have to be reinvested at a lower potential interest rate. MORE

Reverse Price Risk

Business / Finance / Reverse Price Risk: A type of mortgage pipeline risk that occurs when a lender commits to sell loans to an investor at rates prevailing at the time of mortgage application but sets the note rates when the borrowers close MORE

Interest Rate Risk

Business / Finance / Interest Rate Risk: The chance that a security's value will change due to a change in interest rates. For example, a bond's price drops as interest rates rise. For a depository institution, also called funding risk: The MORE

Nonsystematic Risk

Business / Finance / Nonsystematic Risk: Nonmarket or firm-specific risk factors that can be eliminated by diversification. Also called unique risk or diversifiable risk. Systematic risk refers to risk factors common to the entire economy. MORE

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