Defining Risk The variability of returns from those that are expected. What rate of return do you expect on your investment(savings) this year? What rate will you actually earn? Does it matter if it is a bank cd or a share of stock? 5-55-5 Defining Risk What rate of return do you expect on your investment (savings) this year? What rate will you actually earn? Does it matter if it is a bank CD or a share of stock? The variability of returns from those that are expected