Tag Archives | risk capacity

taking risk

How Much Risk Can You Take?

Whether you are investing money, setting up a business or gambling on horses, your first consideration, before parting with any money, should be how much risk you can afford to take. Risk is not necessarily the probability of loss – it is the probability that an outcome will be different than you expect. For example, […]

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Investment Risk

Investment Risk The definition of investment risk is not the probability of losing money, but the probability that the investment outcome will not be what you expect. Risk therefore includes volatility as well as loss. Psychologists have shown that investors put more weight on the pain associated with a loss or drop in value, than […]

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