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what is risk on financial investment ?
here is some explanation :
Risk on financial investment refers to the possibility that the actual return on an investment will be different from the expected return — usually meaning the chance of losing some or all of the original investment.
In simple terms:
It is the uncertainty involved in investing your money, because the outcome is not guaranteed.
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Types of Financial Investment Risks:
1. Market Risk: The risk of losses due to changes in overall market conditions (e.g., stock market crashes).
2. Credit Risk: The risk that a borrower or issuer (like a bond issuer) will default on their payments.
3. Interest Rate Risk: The risk of investment value changing due to fluctuations in interest rates.
4. Inflation Risk: The risk that inflation will reduce the purchasing power of your returns.
5. Liquidity Risk: The risk of not being able to sell your investment quickly without losing value.
6. Currency Risk: For international investments, the risk that currency exchange rates will impact returns.
7. Political/Regulatory Risk: The risk that political decisions or new laws will negatively affect investment returns.
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Example:
If you invest in the stock of a company, and the economy worsens or the company performs poorly, the stock price may fall — resulting in a loss. That loss represents the risk of your investment.
---
Why Risk Matters:
Higher potential returns usually come with higher risk. Understanding risk helps investors:
Choose suitable investments.
Balance risk and return.
Diversify their portfolio to reduce total risk.
Let me know if you want this explained in Nepali too.
here is some explanation :
Risk on financial investment refers to the possibility that the actual return on an investment will be different from the expected return — usually meaning the chance of losing some or all of the original investment.
In simple terms:
It is the uncertainty involved in investing your money, because the outcome is not guaranteed.
---
Types of Financial Investment Risks:
1. Market Risk: The risk of losses due to changes in overall market conditions (e.g., stock market crashes).
2. Credit Risk: The risk that a borrower or issuer (like a bond issuer) will default on their payments.
3. Interest Rate Risk: The risk of investment value changing due to fluctuations in interest rates.
4. Inflation Risk: The risk that inflation will reduce the purchasing power of your returns.
5. Liquidity Risk: The risk of not being able to sell your investment quickly without losing value.
6. Currency Risk: For international investments, the risk that currency exchange rates will impact returns.
7. Political/Regulatory Risk: The risk that political decisions or new laws will negatively affect investment returns.
---
Example:
If you invest in the stock of a company, and the economy worsens or the company performs poorly, the stock price may fall — resulting in a loss. That loss represents the risk of your investment.
---
Why Risk Matters:
Higher potential returns usually come with higher risk. Understanding risk helps investors:
Choose suitable investments.
Balance risk and return.
Diversify their portfolio to reduce total risk.
Let me know if you want this explained in Nepali too.
same here
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Today's after 12:00 $NEIRO Will going High
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#USConsumerConfidence #etherium #SOLETFsOnTheHorizon #BinanceAlphaAlert #AnimecoinOnBinance
I didn't get eligibility even I complete both task
anyone received $SEED?
#TrumpCryptoOrder #BinanceAlphaAlert #bullish
I'm going to buy $PEPE and $NEIRO coin I believe that is going to bull market with in 7 days it makes Up to high profit.
I'm going to buy $PEPE and $NEIRO coin I believe that is going to bull market with in 7 days it makes Up to high profit.
Will $PEPE coin Cross the price of 0.00008 at the time of December End 2024 ?
$PEPE Coin is the next Bitcoin highest growing coin in the market
Today's market going high but $NEIRO
is in its limit of bull it's suddenly going down again .
is in its limit of bull it's suddenly going down again .
is anyone using eeheo.com website please drob comment here .
If this market going down of $HMSTR and $CATI it will be high losses to the investors
Every time when market falls it's gone vary high $NEIRO
It's $NEIRO time goes up to 0.0014300
$BTC will going up
Last 1 hour Data of $NEIRO $NEIRO Market doown but no need to worry It's time to Up And Make profit again
Now it's time to Earn profit $NEIRO
Going to High Again
Going to High Again
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