Financial dictionary: what are risk assets?

Risky assets are those investments that have a greater probability of price variation in the curto term, due to factors external or internal to the issuing companies or the economies in which they operate. For this reason, they are considered riskier than investments in more stable assets, such as fixed income securities. Examples of risky assets include shares in companies in volatile sectors, such as technology or commodities.

However, risk does not necessarily mean that the investment will be negative or unfeasible. Risky assets can also generate high returns for investors who accept taking more risks in their portfolios. Additionally, there are strategies that can help mitigate risk, such as diversifying investments across different asset classes. For example, an investor who maintains a diversified portfolio of stocks, bonds and real estate funds may be less exposed to possible declines in a specific sector.

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Finally, it is important to remember that the definition of risky assets may vary depending on the investor's profile and financial objectives. While some investors may seek risky assets as a way to obtain greater returns, others may prefer to invest in safer assets, even if they offer lower returns. The important thing is that the choice of assets is aligned with the expectations and objectives of each investor, taking into account the risks involved and the ability to withstand them.

*The text of this article was partially generated by ChatGPT, an artificial intelligence-based language model developed by OpenAI. Text entries were created by Curto News and responses intentionally reproduced in full. The answers from ChatGPT are automatically generated and do not represent the opinions of OpenAI or people associated with the model. All responsibility for published content rests with Curto News.

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