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 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 ...

Here at Investopedia, we emphasize the importance of prudent investing—put at stake only what you can afford to lose and ensure your choices align with your financial goals and risk tolerance. This ...

Benzinga explains the various measures used by smart investors to measure risk and return more accurately. Investing is about getting the most bang for your buck. Average investors chase high returns, ...

The Treynor ratio and the Sharpe ratio are financial metrics that use different approaches to evaluate the risk-adjusted returns of an investment portfolio. The Treynor ratio employs beta and measures ...

Idiosyncratic risk refers to risks that are unique to an individual asset such as a company’s stock or a group of assets such as the stocks of a particular industry. Idiosyncratic risks are important ...