Question

Q.16 risk is a probable chance that investment actual return will be__ than as calculated

Answer 1

risk is a probable chance that investment actual return will be less than as calculated. In the context of investments, risk refers to the uncertainty or potential for loss in achieving the expected or calculated return on investment.

• It signifies the possibility that the actual outcome or return from an investment may deviate from the anticipated or projected outcome. When the calculated return is higher than the actual return, it indicates a favorable outcome.
• However, when the actual return is lower than expected, it signifies the presence of risk.
• Investors must consider and assess various risk factors, such as market volatility, economic conditions, and specific investment risks, to make informed decisions and manage their portfolios effectively.
• Understanding and managing risk is crucial for achieving financial goals and ensuring the stability and growth of investments.

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