DEFINITION of 'RiskGrades  RG'
A trademarked method for calculating the risk of an asset portfolio. RiskGrades are based on a variancecovariance approach that measures the volatility of assets or asset portfolios as the scaled standard deviations of the returns.
More complex RiskGrades calculations allow for a few additional concepts:
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BREAKING DOWN 'RiskGrades  RG'
RiskGrades were developed by JPMorgan. You can use RiskGrades to determine the level of risk in your portfolio based on the following numbers:
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