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.
Expected return on an asset = Risk-free rate of return + beta * market risk premium The beta is a calibration factor that is higher (lower) than one if the asset has a systematic, or non-diversifiable, risk that is higher (lower) than the marketâs risk. In the CAPM framework, the MRP