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.
Determine an investment's beta. Find the expected return using CAPM for that beta and use this interest rate as the appropriate discount rate. Summary of Risk and Return. Total risk-the variance (or the standard deviation) of an assetâs return. Total return-the expected return + the unexpected return. Systematic and unsystematic risks. Systematic risks are unanticipated events that affect almost all assets to some degree.