Risk

Financially speaking, risk is the possibility that the results or returns on an investment will not match expectations. Risk involves the potential for losing all or a portion of the initial investment. Risk is frequently evaluated quantitatively by observing past actions and results, and take them into account. A frequent statistic metric used to measure risk in finance is standard deviation. The standard deviation gives a measurement of how volatile asset prices are in relation to their average historical values over a specific time period.