Generally, the possibility that the actual return on an investment exceeds expectations upside (the possibility that the value of an engagement may increase beyond forecast level). Any engagement in the financial market involves the possibility of downside risk and upside risk. – For a borrower, the risk that the market interest rate will fall below the (higher) interest rate agreed with the bank during the term of the contract. – See downside risk, risk, value at risk.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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