Investing is all about striking the right balance between risk and return. There are different types of risks in the stock market and there are ways to mitigate them. All investors naturally want to ...

Here at Investopedia, we emphasize the importance of prudent investing—put at stake only what you can afford to lose and ensure your choices align with your financial goals and risk tolerance. This ...

Investing means taking a certain amount of risk in order to achieve your financial goals. There are distinct categories and types of risk investors contend with, including systematic and unsystematic ...

Spiros Bougheas does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond ...

The Treynor ratio and the Sharpe ratio are financial metrics that use different approaches to evaluate the risk-adjusted returns of an investment portfolio. The Treynor ratio employs beta and measures ...

Idiosyncratic risk is unique to specific investments like companies or industries. Systematic risk impacts all investments and is driven by macroeconomic factors. Mitigate idiosyncratic risk by ...