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.
The variable are defined as follows: 1  Es - expected return for a security. 2  Rf - expected risk-free return rate. 3  Î²s - sensitivity to market risk.  Rm - historical return of the stock 1  market. (Rm â Rf) - risk premium of market assets over risk free assets.