Investment risk refers to uncertainty about outcomes.
Understanding risk helps clarify why investments behave differently.
Types of risk
Risk may relate to:
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market movements
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specific investments
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time horizon
Risk and expectations
Risk is often linked to potential returns, but outcomes are uncertain.
A final note
This article explains how investment risk is commonly described, not how risky your investments are.
If investment risk feels unclear, some people find it helpful to think things through before advice or action. Evoa exists for that purpose — before advice and before action.