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

Related Articles
  1. Managing Wealth

    The Importance Of Diversification

    Without this risk-reduction technique, your chance of loss will be unnecessarily high.
  2. Managing Wealth

    Risk and Diversification: Different Types of Risk

    Let's take a look at the two basic types of risk: Systematic Risk - Systematic risk influences a large number of assets. A significant political event, for example, could affect several of the ...
  3. Investing

    Portfolio Diversification, Done Right

    Diversifying your portfolio by means of different securities and asset classes is an essential approach to lower the overall risk of a portfolio.
  4. Managing Wealth

    Concentrated Vs. Diversified Portfolios: Comparing the Pros and Cons

    Examine the relative advantages and disadvantages of utilizing either a concentrated or a diversified investment portfolio strategy.
  5. Retirement

    Risk And Diversification

    Safeguarding your portfolio involves a few simple steps.
  6. Investing

    3 Reasons Successful Investors Do Not Practice Diversification

    Discover why many of the most successful investors do not bother to create a diversified investment portfolio.
  7. Financial Advisor

    Helping Clients Balance Retirement Portfolio Risk

    Here's how to help clients balance risk in their retirement portfolios.
  8. Managing Wealth

    Understanding Risk-Return Tradeoff

    The essence of risk-return tradeoff is embodied in the common phrase “no risk, no reward.”
  9. Managing Wealth

    How Risky Is Your Portfolio?

    Find out how you could be subject to larger losses than you think.
  10. Trading

    When Geographic Diversification Fails

    Geographic diversification is becoming an ineffective investing strategy, but there are others that pay off in the long term.
Trading Center