Your WEALTH MATTERS BLOG

Standard deviation, also known as volatility, tends to be a popular measure of risk because it can be easily quantified through historical return data. When investments are qualified on a spectrum of low to high risk, it is usually with respect to standard deviation. However, it is important to note that volatility is only one type of risk and evaluating an investment based on one risk metric alone does not paint a complete picture.

Talking about risk can be tricky, as there are so many different categories of risk. This is why we are just choosing to highlight a few categories today.

If you have ever been in the market for a home, you have likely gone through the experience of having to make some concessions on your wish list. Similarly, when finding a Portfolio Manager and/or Investment Firm it is likely that there will be something that you are not overly excited about and that is completely normal. I would even go so far as to say that if everything seems too perfect, that is a red flag!