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Generally when people talk about risk, they focus on financial risk. In terms of finance, it is the risk that a company or individual could lose some or all of the original investment, possibly resulting in inadequate cash flow to meet financial obligations.
The concept of risk is not a simple concept in finance. You cannot make wise investments without first considering risk. To be successful, every investor must be able to identify and understand the types of risk they face across their entire portfolio. Measuring risk is just as important as measuring returns.
In the financial world, risk is often expressed as volatility of returns...
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