Frequently asked questions
What is upside risk potential?
Upside risk potential is the chance that an investment`s returns will exceed expectations, offering more profit but with more uncertainty.
How does investment risk affect potential returns?
Investment risk affects potential returns by introducing uncertainty; higher risk typically offers the chance for higher returns but also greater chances of loss.
Does higher risk mean higher expected return?
Yes, higher risk usually means a higher expected return, as investors want more reward for taking on more uncertainty.