Financial Jargon Buster Dictionary
This glossary is provided for information only and is not regulated by the Financial Services Authority.
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Risk
In its simplest sense, risk is the variability of returns. Investments with greater inherent risk must provide higher expected yields if investors are to be attracted to them. Risk can take any forms, but a major one is valuation risk - paying too much for an asset. See also Currency Risk, Exchange Rate Risk, Market Risk, Political Risk, Volatility.
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