Risk is a big part of investing. An investment's return compensates investors for taking on the risk of a possible loss. Typically, the higher an investment's potential return, the greater the risk of loss.

 (NYSE: CCL) and Medical Properties Trust (NYSE: MPW) certainly have many risks. However, they also offer investors tremendous upside potential if they can navigate the risks and execute their plans.

Carnival had to cease operations during the pandemic. While its revenue dried up, it still had expenses to pay. That forced the cruise ship operator to take on a boatload of debt to stay afloat. It also sold tons of stock to shore up its balance sheet, which diluted existing investors. The debt issuances shifted value from equity investors to creditors:

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Source Fool.com