In everyday language, risk means the probability of something bad happening. Risk in finance, however, is defined

Question:

In everyday language, “risk” means the probability of something bad happening. “Risk” in finance, however, is defined as the standard deviation of the probability of returns.
a. Why do these definitions seem contradictory?
b. Reconcile the two ideas.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...