Question

Vincent enjoys taking his money and placing it in an investment hoping his investment will increase in value. However, there is also the chance that his investment will decrease in value. This chance is known as ____.

Answer 1

Answer:This chance is known as RISK.

Step-by-step explanation:

Definition: Investment risk refers to how one can take a chance which has a probability of loss when it comes to receiving the return of his or her investment. It measures the degree of uncertainty when it comes to the return that one expect to receive from the investment.

Some people can take this risk because if they gain the return it will be great or huge in such that they are willing to take the chance even if there is a chance they can lose because they know if they succeed or do get the returns it will be too great.