downside risk

downside risk definition - business

downside risk

The potential losses that may occur if a particular investment position is taken. For example, the downside risk from holding Treasury bills is quite small. The downside risk from investing in collectibles can be quite high, especially for a novice investor. Compare upside potential.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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