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Why do we have to consider the risks before we invest?​

1 Answer

2 votes

answer:

your investment value might rise or fall because of market conditions, therefore it is always a smart to consider the risks in investing before you invest. if the risk is huge, then you might not want to invest due to the fear of losing your money.

Step-by-step explanation:

  • in finance, risk refers to the degree of uncertainty and/or potential financial loss inherent in an investment decision
  • in general, as investment risks rise, investors seek higher returns to compensate themselves for taking such risks
  • every saving and investment product has different risks and returns