3.1Investment Foundations · Mission 4
What Risk Means for a Shareholder
Begin with uncertain outcomes and the shareholder's residual claim, then inspect the same stock through three different risk lenses.
Your mission
Define equity risk, follow the shareholder claim, and build a three-lens risk map before measuring anything.
18–20 minutesFive guided missionsThree-Lens Risk Map
Guided equity-risk lab
0 of 5 missions complete
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OPS Guide
Risk is exposure to uncertain outcomes. Actual shareholder results can finish above or below what the investor expected.
Inspect the three possible one-year shareholder outcomes.
Mission 1 of 5 · Define
Start with uncertain outcomes
Direct definition
Risk is exposure to uncertain outcomes. An expected return is the probability-weighted average result; the actual return is the result that occurs.
Northstar Transit shares have an expected one-year return of 6%. Open every possible outcome to see why uncertainty includes upside and downside.
Below expectationExpected 6%Above expectation
Expected year
+6%
The actual return matches the investor's expected return.
0 of 3 outcomes inspected
Inspect the three possible one-year shareholder outcomes.
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