Financial risk is an umbrella term for multiple types of risk associated with financing, including financial transactions that include company loans in risk of default.Risk is a term often used to imply downside risk, meaning the uncertainty of a return and the potential for financial loss.In addition to financial risks, there are several categories of risk which we briefly mention and that will be explored later in the course.

This document explores:

• The Normal Density Function
• Risk Diversification in a Perfectly Uncorrelated World
• Finance: The Quiet  World of Independence and Normality
• And more

This is part 2 of a 45-document course on Financial Markets.