Risk and Diversification: Introduction

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With the markets moving up and down like a Six Flags roller coaster, is there anything you can do to stomach the risk? Have you carefully considered the various risks that are associated with each investment you make?

The fact is, many people either have no desire or no knowledge about how to protect themselves from unneeded risk. In this tutorial, we'll introduce you to risk and give you a good foundation to understand the relationship between return and risk. (For related reading on this topic, see Determining Risk And The Risk Pyramid and The Equity Risk Premium - Part 1 and Part 2.)

Next: Risk and Diversification: What Is Risk? »

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