In The Flaw of Averages, Sam Savage makes the claim that uncertainty is the nature of the Universe, but the risk is in the "eye of the beholder." He uses the example of uncertainty as to the chance that a particular stock will rise or fall on the next day and states that he is risk-free from falling stock price if he has sold the stock short. The only risk he experiences is if the stock goes up.

Do you agree or disagree with this definition of risk? Why or why not? Justify and provide an example of another situation that backs up your perspective.