In
investments, uncompensated risk is the level of additional
risk
In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about the effects/implications of an activity with respect to something that humans value (such as health, well-being, wealth, property or the environm ...
for which no additional
return
Return may refer to:
In business, economics, and finance
* Return on investment (ROI), the financial gain after an expense.
* Rate of return, the financial term for the profit or loss derived from an investment
* Tax return, a blank document or t ...
s are generated and when taking systematic withdrawals make the probability of failure unacceptably high. Uncompensated risk is reduced by
diversifying investment.
References
Investment
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