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When Jess learned that his wife was terminally ill, he became depressed and then became quite concerned about her and her illness. As she came closer to dying, he rehearsed her death over and over in his mind and began to think about how life would be without her after she was gone. Jess is experiencing:
Reward to Risk Ratio
A metric used to compare the expected returns of an investment to the amount of risk undertaken to capture these returns.
Total Risk
The overall risk associated with an investment, including both systematic and unsystematic risks.
Market Risk
The potential for a loss faced by an investor, which is attributed to elements that influence the total performance of the financial markets.
Firm-specific Risk
The portion of a company's risk that is attributable to its own operations and environment, as opposed to market-wide risk.
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