Risk Associated with Products

Risk is a critical factor when assessing the performance of a security and the construction of a portfolio. In the context of investing, risk is defined as the volatility of the returns of a security or a portfolio. Volatility is a measure of how frequently and how wildly the price of a security or portfolio swings over a given period. When volatility is high, returns can vary from high to low, so investors expose themselves to the possibility of bigger losses and bigger gains.

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