Question

which factors affect the probable consequences likely if a risk does occur?

Answer 1

which risk you are saying

Answer 2

Risk timing

Factors affect the probable consequences likely if a risk does occur Risk timing.

• When an investor attempts to purchase or sell a stock based on forecasted future price movements, they are engaging in timing risk. The possibility of missing out on profitable price movements because of a timing error is what timing risk refers to.
• Lower volatility is related to a longer time horizon. Stocks are subject to greater risks over shorter time frames. But over longer time frames, stocks have traditionally generated gains that can counteract concerns in the short term.
• The only thing it tells us is that it depends on the specific investor, his present wealth, and his patterns of risk tolerance as shown by his unique utility function. In this approach, we can say that risk grows over time for some investors. For others, risk goes down over time.

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