EXPLAIN THE CONCEPT OF RISK..BE BRIEF BUT THOROUGH

PLEASE FOCUS ON THE QUESTIONS ASKED BELOW.

If the future cash flows from an investment are not certain, then we call such an investment risky. And the more uncertain are those cash flows, the greater the risk.

This means there is an uncertainty about the future cash flows or that the future cash flows could be different from expected cash flows

. The degree of uncertainty varies from investment to investment.

All of this is the essence of risk.

As a financial manager, there are many ways to consider risk while making financial decisions.

Briefly discuss the impact of risk on both the stock and bond markets focusing on beta , the time value of money and ratings from the credit rating agencies.