Introducing risk

Risk is an inherent part of your daily life, isn’t it? When you cook a new recipe for the first time. When you tell someone a secret. When you watch a horror movie for the first time. All of these instances come with their own set of risks. Investments are no different. When you invest some money in an asset, you expect to get a certain amount of returns from it, isn’t it? But most of the time, the actual returns you get will be different from the returns you expected. This is the risk involved in investing. It signifies the possibility that you could lose some of the money you invest. Risk can be calculated for one asset. Or for a portfolio of assets. Head to the next chapter in this module to learn more about portfolio risk.