One of the key investment concepts most investors do not understand is risk versus return. This important idea means that generally the more return you get the riskier the investment. It sounds simple but it can get complicated fast because there are many kinds of risk.
Most investors think of risk as the risk of losing money. I think a good definition of risk is any uncertainty that has the potential to have a negative effect on your financial welfare. If you just define risk as losing money you would never invest in stocks, yet they are an important asset […]
Full Post at www.kearneyhub.com