Risk of loss
The possibility of getting back less than the amount invested.
Definition
The possibility of getting back less than the amount invested.
Why this concept matters
Understanding it helps choose an allocation suited to your goal.
What to watch
Higher expected returns generally come with higher risk.
Simple example
A 20% fall temporarily turns €10,000 into €8,000.
Example currency : France (EUR). The reference country controls the example currency.
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