Old English freond friend, present participle of freogan to love, to favor, from Proto-Germanic *frijojanan to love (cf. Old Norse frÃ¦ndi, Old Frisian friund, Middle High German friunt, German Freund, Gothic frijonds friend, all alike from present participle forms).
Best Answer: Risk and more importantly return, are INVESTING terms, NOT insurance terms. Risk is the chance you take of losing your money. Return is the amount of money you GAIN. So they are opposites-the greater the risk, the greater the potential return. Think of it like going to the horse track.
Bankers can then choose how to allocate the remainder of their assets between holding additional reserves, making loans, and investing in securities. Each one of these asset types comes with a different level of risk and rate of return. Riskier assets tend to yield a higher rate of return; thus, individual banks choose the asset allocation that provides the correct balance of risk and proï¬t.