Investment risk is uncertainty about outcomes, including losing money. Price volatility is one expression; issuer default, inflation and difficulty selling are others. A stable-looking asset can still have credit risk. Higher potential returns generally involve greater risk, not a promise of a higher result. Risk belongs here because a headline yield is incomplete without asking what can go wrong and when the money may be needed.
Source: Risk.
Image credit: freeGraphicToday · CC0. Resized and JPEG compressed.
