Asked by Huyen Nguyen on May 05, 2024
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Risk is defined as the uncertainty of a profit or a loss.
Risk
The potential for loss or the chance that an investment's actual return will differ from the expected return.
Uncertainty
A situation characterized by the lack of predictability or definite knowledge about an outcome or result.
Profit
The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.
- Understand the concept and implications of risk in finance.
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Learning Objectives
- Understand the concept and implications of risk in finance.
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