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How do i calculate the risk in my investment portfolio? |
How do i calculate the risk in my investment portfolio? Before you go freaking out about this. I recommend a good financial advisor. Because if you don't have any risk or low risk you may as well not have a portfolio. The number one thing I've learn about the market is there is no reward for no risk. Gov. issued bonds are as safe as it gets. They won't offer an interest rate that will even keep up with inflation. I don't recommend using these trade it yourself on-line places the same way I don't recommend taking your own tonsils out or rebuilding your own transmission. Yes they charge. The good one mostly charge a %. Meaning they have a vested interest in you doing well. Their fees pay for themselves if they are even decent. If they aren't fire them. Hi, There are different kinds of risk. Risk is usually defined as volatility. Price volatility is usually determined by the standard deviation of your portfolio. Beta is the systematic risk of a portfolio. That is how much the returns of a portfolio change with a change in the return on the market, which is usually defined as the S&P 500. To calculate systematic risk you need to calculate the weighted average beta of your portfolio. You also might check out riskgrades.com. Its a free website that measures portfolio risk. You might want to find an advisor who can help you optimize your porfolio, to balance the risk with the expected return. |
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Investor's best friend, at least for me, is the Motley Fool. www.fool.com ...Go to your bank, whom you deal with, and set up an appointment. They can discuss your options. How old you are, how much you have to invest, what your goals are and so on. Good luck. ...I like ETFs because some of them target very specific market sectors ignored by mutual funds. Also, there is no minimum purchase, and the fees are usually lower than an equivalent mutual fund. ...Dear Friend, To brighten your day! Your Friend, Francesois ...There is no value added by diversification (all things being equal). You are trying to reduce your risk. ...There's a website that determines risk of a portfolio. Its free, you just have to register. www.riskgrades.com ...Hi, i know what your question means. i also think stock market is a nice place for investing. I found some useful tips in stock trading. It includes stock basics, how to protect your profit, fin... An investment portfolio is simply an array of various stocks/bonds/real estate/mutual funds/ETFs, etc, etc. that one has purchased to diversify their investment risk. The possibilities are endle... |
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