Uncompensated risk

In investments, level of additional risk

In investment, uncompensated risk is the level of additional risk for which no additional returns are generated and, when taking systematic withdrawals, make the probability of failure unacceptably high. It is reduced by diversifying investment.[1]

References

  1. ^ Banking Laws of North Carolina. LexisNexis. 2018. p. 2041. ISBN 9781522147176.