Explain risk, return, uncertainy and rationality

A. Risk is referring to the decision-making situation under which all the potential outcome and their likelihood of occurrence are known to the decision maker and he will be trying to discount them in advance and they will be lowering the overall rate of return of the investment.

B. Return is the total appreciation in the value of the investment through capital gain or through dividend payment so it will be reflecting the appreciation in value of investment.

C. Uncertainty will be referring to all such situation under which the outcome and their probability of occurrence are never known to the decision maker.

D. Rationality is reflecting the quality of being accordance with reason or logic while investing in the market and making decision based upon conformity with one belief.