Are investments with more variability in the rate of return riskier than investments with less variability?

If yes, is it because the larger the variablity, the higher the probability of getting a rate of return lower than the expeceted rate of return?

Yes, the mathematical definition of risk is exactly that: larger variability is the return. However, the variation is symmetrical around the mean. The probabilty of having a larger return than the mean is just as big as the probability of having a smaller return than the mean.

the greater risk the greater potetional for reward.

Yes and You are correct in your logic. An Investment as mentioned in your question requires CARE and clearly defined business plan and investor exit plan.. also these types of investments usually require investor accreditation's

Tags

　　Startup Capital 　　Sector Fund 　　Seed Money 　　Seed Capital 　　Return Investment 　　Real Money 　　Real Estate Investment 　　Raise Capital

Related information

Basic Finance: Solving for (i) on a rate of return?

Yes, $33,520 is the present value of the investment and $10,000 are the annual rents. In your calculator if you enter the PV as a positive number you have to enter the rents as a negative number. N...

What investments will return a compound interest?

All investments compound interest. That only means that you receive interest, and then you will recieve interest in that interest as well. If you are looking to grow your capital, compound intere...

90-day investments in Great Britain have a 6% annualized return and a 1.5% quarterly (90-day) return. In the?

It sounds to me that there would be an expected increase of the USD vis-a-vis the pound over the three month period. but I cannot help you with your homework.

...

What investments out there provide at least 25% cash on cash return per year?

Venture capital, but requires large investment of time, money, and expertise.

...

What is your YTD return for your investments?

I'm about even.

...

How do calculates returns on an investment?

Assuming interest is compound (you earn interest on your interest)... One way to do it is to simply take the amount you start with, multiply by 1 + the interest rate (in this case .1) and repeat...

I need 9% return on my investments what shoud I do $5000 today, $15000 five yrs from now or $1000 a yr 15 yrs?

From the 3 plans you listed over 15 years ... 15K invested 5 years from now give the highest end value 1K per year for 15 years has a slightly lower return. 5K invested now has the lowest retu...

Is anyone else as excited as me that I have had a 20% return on my investments in the past 6 months???

i'm beside myself with glee. on the other hand that only puts you about even. once you factor in inflation, increased cost of living etc., what do you have to show for it? i mean, not to ev...