Investing means taking a certain amount of risk in order to achieve your financial goals. There are distinct categories and types of risk investors contend with, including systematic and unsystematic ...

Investing is all about striking the right balance between risk and return. There are different types of risks in the stock market and there are ways to mitigate them. All investors naturally want to ...

Learn what active risk is and how to calculate it. Understand the methods to evaluate active risk in portfolios and explore examples of funds outperforming benchmarks.

(January 2006) I’m a firm believer in risk management. That’s a bit like saying “I’m a firm believer in breathing.” We are all risk managers whether we admit it or not. And if that’s the case, I’d ...

Below is a graphic representation of the data in the chart above. It may clearly be observed that standard deviation of the portfolio is asymptotic (law of diminishing returns) as it relates to ...

Investing is a balancing act between risk and reward, where the aim is to take on types of risks that offer proportional returns. In this game, not all risks are created equal — some come with the ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...