Portfolio Risks - Introduction

A client's idea of risk is usually limited to concerns about market risk. Consequently, there are many different types of investment risk and IAs should understand them all. In addition, IAs should know how to measure risk and devise strategies to protect clients.

The tutorial, Risk and Diversification examines the different types of risk, the risk/return tradeoff, and diversification.



Bond Risks


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  3. Risk-Return Tradeoff

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  4. Market Risk

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  6. Accepting Risk

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  2. How does market risk differ from specific risk?

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  3. Why is risk return tradeoff important in designing a portfolio?

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  4. Type Of Return

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  5. The primary reason for an IA to rebalance a client’s portfolio is to:

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  6. What is the difference between inherent risk and systematic risk?

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