All investments involve some degree of risk. But what is investment risk? Watch our new video to learn more.
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In finance, risk is the likelihood that a potential financial loss might occur in an investment decision. It is a negative deviation from the expected outcome. Or, in simple terms, you’ll lose money that you expected to gain.
Every saving and investment product has different levels of risk and returns. Differences include how quickly investors can liquidate their accounts, how fast their money will grow, and how safe their money will be.
Some investors consider less risk to be more favorable, while others prefer investments with higher risks with the promise of better returns.
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