Risk assets generally refer to assets that have a significant degree of price volatility, such as stocks, commodities, high yield bonds, real estate and currencies. Risky assets are those assets that are not risk-free; they carry an element of risk. The term generally refers to any financial security or instrument, such as stocks, commodities, high yield bonds and other financial products that are likely to fluctuate in price. Risk related to changes in the market or the low return on investment of a financial asset (for example, when you invest, you make decisions about what to do with your financial assets).
Risk is any uncertainty regarding your investments that has the potential to adversely affect your financial well-being. Investing in risky assets means that there is a possibility that the value of the asset will rise or fall due to fluctuating interest rates, changes in credit quality, default risks, interruption of supply and demand, and other factors.
