analyse risk in investment decision


Risk is uncertainty of the income/capital appreciation or loss or both. All investment is risky. The higher the risk taken, the higher is the return. But proper management of risk involves the right choice of investment whose risks are compensating. The total risk involves the right choice of investment whose risks are compensating. The total risks of two of two companies may be different and even lower than the risk of a group of two companies if their companies are offset by each other.      

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