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Risk

Risk is a four-letter word. Like other less polite four-letter words, it is hard to imagine living without it. An understanding of risk is crucial in any attempt at becoming a competent investor. While risk may be unavoidable, its definition is, at best, fluid. Risk can mean different things to different people at different times. When investors discuss investing, they say “risk and return.” Risk first, return second. Likely they say it this way partly because risk rolls off the tongue better, but also because risk represents the fundamental ...

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