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Risk and Return
A higher possible gain usually comes with more uncertainty or a greater chance of loss, but the gain is never owed.
Example
One choice may add about $3 to $100 in a year. Another might add $30 or lose $30. The second has a wider range, not a promise of the higher result.
How it fits in
Risk includes more than price movement. It can mean permanent loss, inflation, poor liquidity, concentration, or missing a goal. Expected return is an estimate across possible outcomes, while realised return is what happened. A risky choice can still be a bad choice with a poor expected return. Compare the range of outcomes, timing, fees, access, and consequences of a shortfall rather than assuming that taking more risk earns a reward.
Where this is taught
Practise it on the platform
Related terms
When the money you earn from saving starts earning its own money on top.
Interest paid only on the original amount, never on the interest you have already earned.
Needs are the things that keep you safe and well. Wants make life nicer. Mixing them up is what empties most budgets.