1. Describe the definition of risk as it is understood in the financial world. Your response must include something about variability of returns.
2. Assets carry many levels of risk. Depending on the level of risk, we are able to determine if we will receive a return on our investment. Investment risk is a measure of the level of uncertainty of achieving the returns as per the expectations of the investor.
I hear investors say that it is not a true investment without taking some level of risk. What are your thoughts on this statement?