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6 June, 10:59

What is the definition of risk? putting money into more than one investment amount made in profit on an investment using borrowed funds for an investment possibility of losing money on an investment

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  1. 6 June, 12:23
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    possibility of losing money on an investment

    Explanation:

    A risk from an investment perspective is the possibility of incurring losses due to market uncertainties. An investor makes a profit if the market moves in his expected direction. However, the market does not always behave as expected, thereby exposing investors to potential losses. The probability that the market will not behave as expected is the risk factor in an investment.

    To minimize losses should the unexpected happen, investors deploy strategies called risk management or risk mitigation. Some of the methods used to manage risks include investing in a portfolio rather than in a single instrument. Hedging strategies can also be used.
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