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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KM
Krystal MartinezMay 07, 2024
Final Answer :
True
Explanation :
Risk involves the possibility of experiencing either a profit or a loss due to uncertainty in outcomes of decisions or events.