Most people say that risk is the chance we take that we’ll lose all or part of the money we invest. That’s true as far as it goes. But a more complete definition of risk acknowledges the availability of investments with virtually ironclad guarantees that we get all our money back plus the interest promised – for instance, CDs in federally insured banks. Also, with all investments, we run the risk that our return will be less than inflation. So, risk is the chance we take that we may lose money or that our money may lose value.
Chris Bryant is an American financial advisor.