BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Definition: Investment risk can be defined as the probability or likelihood of occurrence of losses relative to the expected return on any particular investment. Description: Stating simply, it is a measure of the level of uncertainty of achieving the returns as per the expectations of the investor.

Detailed explanation-2: -A risk may be taken or not, while uncertainty is a circumstance that must be faced by business owners and people in the financial world. Taking a risk may result in either a gain or a loss because the probable outcomes are known, while uncertainty comes with unknown probabilities.

Detailed explanation-3: -Uncertainty is the inability to forecast future events. People can’t predict the extent of a possible recession, when it’s going to start/end, how much it will cost, or what companies will be able to make it through unscathed.

Detailed explanation-4: -Types of Financial Risk In general, financial theory classifies investment risks affecting asset values into two categories: systematic risk and unsystematic risk. Broadly speaking, investors are exposed to both systematic and unsystematic risks.

Detailed explanation-5: -Types of Risks Widely, risks can be classified into three types: Business Risk, Non-Business Risk, and Financial Risk.