May 13, 2013 | Risk Management
LEVEL: INTERMEDIATE Risk management is generally considered a defensive strategy as the techniques that are used are focused on minimizing loses and avoiding the risk of ruin. A basic concept of risk is that it is highly correlated to reward. As an investor...
May 13, 2013 | Risk Management
LEVEL: BEGINNER Inflation risk is the chance that the value of income or specific assets decline in value as other prices increase which erodes the purchasing power of a currency. Inflation causes currency to decrease in value at a specific rate. Inflation Inflation...
May 13, 2013 | Risk Management
LEVEL: BEGINNER Political risk is a factor that can generate uncertainty and can directly or indirectly effect investments on a global basis. The risks can create significant volatility, which needs to be mitigated to some extent to allow an investor to focus on...
May 13, 2013 | Risk Management
LEVEL: BEGINNER An industry risk analysis determines the financial risks of investing in a specific industry and the potential spillover of how risks in one industry can affect the performance of another. Industry risk affects the returns of a stock price of...
May 13, 2013 | Risk Management
LEVEL: INTERMEDIATE The volatility of a security is defined as the change in the asset in percentage terms on an annualized basis. Most investors are cognizant of volatility as it relates to returns on their portfolio especially if the market is moving lower. ...
May 13, 2013 | Risk Management
LEVEL: BEGINNER Company risk which is also known as unsystematic risk is risks that an investor faces that are directly related to the performance of a specific company. Company risks can stem from debt, sales of a product or even the management of the company. ...
