Risk associated with the product

Some investment products are more secure than others. Canadian treasury bills, for example, have a very low risk of not giving the expected return. It is very unlikely that the government will stop paying its loans on the international markets. However, purchasing stocks from a single company can either make you a millionaire or cause serious financial problems should the company go bankrupt.

The risk associated with a product includes its inherent volatility, i.e. the standard deviation of fluctuations in the investment's value over time. For example, the more a stock fluctuates between two trading sessions, the greater its volatility. In this sense, its potential for a higher return may also be greater.