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40 votes
40 votes
What is the factor that you must remember

before investing that has to do with how
risky the investment is?

User Wanna Coffee
by
2.7k points

1 Answer

21 votes
21 votes

Answer:

safety of the investment.

Step-by-step explanation:

Risk management can be defined as the process of identifying, evaluating, analyzing and controlling potential threats or risks present in a business as an obstacle to its capital, revenues and profits.

This ultimately implies that, risk management involves prioritizing course of action or potential threats in order to mitigate the risk that are likely to arise from such business decisions.

Market risk premium can be defined as a measure of the difference between a market rate of return on a market portfolio and the return on a risk-free investment such as government bonds (Treasury bills) or interest rate.

In Risk management, safety of the investment is the factor that you must remember before investing and it typically has to do with how risky an investment is.

User Zanussi
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