| Risk | |
 The chance that an investment's actual return will be different than expected. This includes the possibility of losing some or all of the original investment. It is usually measured using the historical returns or average returns for a specific investment. |
|
 Higher risk means a greater opportunity for high returns... and a higher potential for loss. |
|
 Determining Risk And The Risk Pyramid - Many investors do not understand how to determine the level of risk their individual portfolios should bear. The Equity Risk Premium - Part 1 - Learn how the expected extra return on stocks is measured and why academic studies usually estimate a low premium. The Equity Risk Premium - Part 2 - See the model in action with real data and evaluate whether its assumptions are valid. Risk and Diversification - Basic introduction into what risk is, the different kinds and why investors should be aware of risk. Also, how diversification can help investors minimize risk. |
|
