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Learn & Earn/Risk Management & Investor Psychology

Chapter 1 – Understanding Investment Risk

Chapter 1 of 3

1Chapter 1 – Understanding Investment Risk

Learning Objectives

After completing this chapter, you will be able to:

  • Understand what investment risk means.
  • Learn why every investment carries some level of risk.
  • Identify the major types of investment risk.
  • Understand the relationship between risk and return.
  • Learn how investors manage investment risk.
  • Make more informed investment decisions by recognising potential risks.

Test your knowledge

4 practice questions — click any question to expand and answer.