What is meant by 'risk' in investment terms?

In investment terms, 'risk' refers to the chance of losing money or experiencing a decline in the value of an investment. This concept implies that with any investment comes uncertainty regarding the future performance of that asset. Investors must weigh the potential for loss against the opportunity for gain, as higher risks often accompany the possibility of higher returns. This is a fundamental principle in finance known as the risk-return tradeoff, where generally, the greater the risk taken, the higher the potential reward, but also the greater the potential for loss.

The other options do not capture the true essence of risk. The potential gain expected from an investment focuses solely on rewards, while the level of investment required addresses entry costs rather than risk. Lastly, there's no guarantee that an investment will be profitable, which directly contradicts the concept of risk as it acknowledges uncertainty in investment outcomes.