Results (
English) 2:
[Copy]Copied!
Investment by holding a variety of securities in a foreign country can reduce the risks of investing in the country is at risk for Down can be reduced by holding a variety of securities, such securities are different. Although foreign investment can help reduce the risk or diversification of investors, but what investors face is market risk, which they can not control as follows: the risk can reduced by the holding. a variety of securities as diversification investment across different securities , even if the foreign investment can help reduce the risk or diversification of investors. But what investors face is market risk, which they can not control it follows of. securities markets at risk A risk that affects a number of assets that investors can not predict or prevent yourself from these risks. For example, The risk of political events Regulatory risk - the risk is not systematic. Or a specific risk. The risk of this type of investment can prevent or diversification of investment measures, of course, as commonly used in statistics Risk Can be defined As a Chance that The Actual outcome from an Investment Will differ from The expected outcome. The total risk. of Investments Can be measured with Such Common Absolute Measures Used in Statistics As variance and standard deviation. Variance Can be calculated As a Potential deviation of each possible Investment rate of Return from The expected rate of Return. Standard deviation is calculated As The Square root of. The variance. The more Variable The possible outcomes that Can occur, The greater The risk. Fundamental Risks All Strategies Have risks. After all, You Don 'T Get Returns for Taking on Zero risk. The Key is to Understand them and be sure they. are Worth Taking. Here are some Key risks: Investment risk 'is The variability of Returns and The Chance that your Investment Will Return less than You Expect, or your Investment Makes a Loss Leaving You with less Capital than When You Started, or your Investment. Keep up with Inflation does Not Even Worth meaning it is less over time. 'Volatility' is The relative rate at which The Price of an Investment Moves up or down. Generally, The Higher The Potential Returns, The The greater risk. The smaller. The Potential risks, The Lower The Returns. RISK / RETURN TRADE-OFF Successful Investors Understand The risk and Return characteristics of their Investments and their own 'risk Profile'. For more information About understanding your 'risk Profile', Click here. Different Investors. will weight their portfolios in different ways, depending on their investment goals and 'risk profile'. An investor who is aiming for capital growth over the long term, and who has the capacity to tolerate greater volatility and fluctuations in the value of their investments,. may choose to include more higher risk / higher return investments than an investor who relies on their investments for a regular income. For example, shares in a speculative mining company may be quite volatile, with the share price moving considerably over a short period of time. . On the other hand, residential property is usually less volatile, with property prices moving more gradually over a longer period of time.
Being translated, please wait..
