A type of risk that reflects the possibility that investors will have to buy or sell a specific amount of an underlying asset at a strike price that is worse than the market price, resulting in potential significant losses. Losses can be either in terms of negative returns or lower than expected returns.
Investment risk can also be defined as the probability or likelihood of losses that wipe out, partially or completely, any expected return on any particular investment. It is a measure of the uncertainty engulfing the attainment of expected returns from an investment.
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