Return refers to the benefit the investor will receive from investing in the security. Risk refers to the possibility that the expected returns may not MATERIALISE. For example, a company may seek capital from an investor by issuing a bond. A bond is a debt security, which MEANS it represents a borrowing of the company.

The security will be issued for a specific period, at the end of which the AMOUNT borrowed will be repaid to the investor. The return will be in the form of interest, paid periodically to the investor, at a rate and frequency specified in the security. The risk is that the company may fall into bad times and DEFAULT on the payment of interest or return of principal.

Return refers to the benefit the investor will receive from investing in the security. Risk refers to the possibility that the expected returns may not materialise. For example, a company may seek capital from an investor by issuing a bond. A bond is a debt security, which means it represents a borrowing of the company.

The security will be issued for a specific period, at the end of which the amount borrowed will be repaid to the investor. The return will be in the form of interest, paid periodically to the investor, at a rate and frequency specified in the security. The risk is that the company may fall into bad times and default on the payment of interest or return of principal.