"Risk" as markets consider it is more about volatility. The higher the volatility, the more likely you are to make (or lose) money. People being as they are, volatility is usually perceived negatively and it causes people to be less willing to pay for volatile assets.
Look at the lengths people will go to for a nonvolatile risk-free return in bonds or bank accounts - but they know they can only lose a few percent if things go wrong (eg. interest rate rises).
If you take that volatility risk, you are rewarded for it with higher returns, on average :)
Look at the lengths people will go to for a nonvolatile risk-free return in bonds or bank accounts - but they know they can only lose a few percent if things go wrong (eg. interest rate rises).
If you take that volatility risk, you are rewarded for it with higher returns, on average :)