Economics Risk And Return Questions
Financial risk refers to the potential for loss or uncertainty in achieving financial goals or objectives. It is the possibility that an investment or financial decision may result in a negative outcome, such as a decrease in value or loss of capital. Financial risk can arise from various factors, including market volatility, economic conditions, creditworthiness, liquidity, and regulatory changes. It is an inherent aspect of investing and managing finances, and individuals and organizations must assess and manage financial risk to make informed decisions and protect their financial well-being.