"Risk" is a funny word. In the context of investing, it is used constantly; however, if you ask somebody to define what he or she really means, you are likely to be met with plenty of hesitation.

Upside risk refers to the potential for an investment or strategy to perform better than expected. Unlike downside risk, which focuses on the likelihood of losses, upside risk highlights the chance ...

This difference is why investors use risk-adjusted performance metrics. These tools help measure how much risk was taken to earn a particular return.