Photo Credit: GotCredit
This is another piece in the irregular Simple Stuff series, which is an attempt to make complex topics simple. Today’s topic is:
What is risk?
Here is my simple definition of risk:
Risk is the probability that an entity will not meet its goals, and the degree of pain it will go through depending on how much it missed the goals.
There are several good things about this definition:
But this is a blog on finance and investing risk, so now I will focus on that large class of situations.
What is Financial Risk?
Here are some things that financial risk can be:
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