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.
Measure of risk-adjusted performance. Some refer to the alpha as the difference between the investment return and the benchmark return. However, this does not properly adjust for risk. More appropriately, an alpha is generated by regressing the security or mutual fund's excess return on the benchmark (for example S&P 500) excess return. The beta adjusts for the risk (the slope coefficient).