Risk assets refer to investments that have higher potential returns but also come with a greater degree of risk. These types of assets are typically associated with capital markets, such as stocks, bonds, and real estate. They carry more uncertainty than other asset classes like cash or government securities, which makes them more volatile in the short term. However, over longer periods, they have historically provided higher returns compared to safer investments. Risk assets are often held by institutional and individual investors who are willing to take on greater risk in pursuit of higher potential rewards.