Financial Dictionary
Risk
The chance that an investment's actual return will be different than expected. This includes the possibility of losing some or all of the original investment. It is usually measured using the historical returns or average returns for a specific investment.
Investopedia Commentary
Higher risk means a greater opportunity for high returns... and a higher potential for loss.
Related Links
Determining Risk And The Risk Pyramid
The Equity Risk Premium - Part 1
The Equity Risk Premium - Part 2
See also: Beta, Country Risk, Eat Well, Sleep Well, Event Risk, Liquidity Risk, Market Exposure, Political Risk, Preservation of Capital, Price Risk, Reinvestment Risk, Return, Risk Averse, Risk Capital, Risk/Return Tradeoff, Systematic Risk, Unsystematic Risk