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is the probability of getting return. It is measured in terms of deviation between actual return and expected return.*PortfolioInvestmentReturnDerivativeRisk

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Solution

It seems like you're asking about the concept of risk in the context of investment portfolios. Risk, in this context, is indeed the probability of not achieving the expected return on an investment. It's measured as the standard deviation of the actual return from the expected return.

Here's a step-by-step explanation:

  1. Portfolio: This is a collection of financial investments like stocks, bonds, cash equivalents, funds (such as mutual funds or exchange-traded funds), and other investment types.

  2. Investment Return: This is the gain or loss made from investing in a portfolio. It's usually expressed as a percentage.

  3. Derivative: This is a financial security with a price that is dependent upon or derived from one or more underlying assets. The derivative itself is a contract between two or more parties based upon the asset or assets.

  4. Risk: In investing, risk is the chance that the actual return on an investment will be different than the expected return. High-risk investments often have the potential for higher returns but also higher losses.

  5. The probability of getting a return is based on a variety of factors, including the type of investment, the risk associated with that investment, market conditions, and the time frame of the investment.

  6. The deviation between actual return and expected return is a measure of risk. If the actual return is far from the expected return, the investment is considered high risk. If the actual

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