absolute risk Absolute risk represents the overall level of uncertainty or fluctuations in investment returns, encompassing all forms of risk associated with investment performance, including primary risks and additional risks. It does not differentiate between positive and negative fluctuations in value. accredited investor An accredited investor refers to both individuals and institutional investors who fulfill specific criteria related to their income, net worth, or investment expertise. This designation is crucial in securities law as it allows accredited investors to participate in certain investment opportunities that are not available to the general public.