Definition of «risky assets»

The term "risky assets" refers to investments that have a higher potential for generating returns, but also come with greater risk. These types of assets are typically associated with higher levels of volatility and uncertainty in terms of their future value or performance. Examples of risky assets include stocks, bonds issued by companies with lower credit ratings, real estate investments, commodities such as gold or oil, and derivatives like options or futures contracts. Investors who are willing to take on more risk may hold these types of assets in their portfolios in the hope that they will generate higher returns over time compared to safer investments like government bonds. However, there is no guarantee that risky assets will perform well and they can experience significant losses if market conditions deteriorate or economic factors change unexpectedly.

Phrases with «risky assets»

Sentences with «risky assets»

  • Historically, over long periods of time, money invested in riskier assets such as stocks has generally rewarded investors with higher returns than funds invested in ultra safe and liquid assets. (personalfinanceinsider.com)
  • This means investors who want higher returns must consider taking on greater risk — by increasing leverage or moving into riskier asset classes. (blackrockblog.com)
  • That can have a temporary effect on the prices of risky assets like stocks. (alephblog.com)
  • (see all sentences)
a b c d e f g h i j k l m n o p q r s t u v w x y z