Risk & Return

Risk means uncertainty about outcomes and the ability to meet a goal. Price volatility is one part; inability to sell, issuer failure, custody loss and inflation also matter. Distinguish willingness to tolerate a loss from financial capacity to bear it. A return range has assumptions, not a promise. Compare outcomes over the same horizon, in the same currency and after costs. A smooth historical chart cannot establish that an asset is safe under conditions it has never encountered.

Worked example (hypothetical)

A position worth 40 million rial loses 30%, leaving 28 million. To regain 40 million it then needs 40/28 − 1 = 42.9%. Equal percentage gains and losses do not cancel.

Check your understanding

Name the loss that would interrupt your next necessary payment. That identifies capacity and timing, not a preferred ticker.

Sources, reviewed 5 October 2026

• Investment Products
• Bonds