＜Risk＞

Risk refers to the range of fluctuation of return (the standard deviation).

Risk is expressed as a percentage (%). Risk is associated with "danger" or "loss", but in the world of investing, it not only refers to the range of loss (negative deviation) but also the range of profit (positive deviation).

 

On the Performance Sheet, higher risk figure indicates larger range of fluctuation of return (the standard deviation).

 

＜Relationship between risk and return＞

In general, pursuit of a higher return is accompanied by greater risk. On the other hand, if the risk is minimized, high returns should not be expected.