Investment Risk and Risk Classes
Thursday, October 01, 1998 » posts.tags:
This paper aims to present a risk classification that can be used for all investment funds and that is close to what the investor perceives as “risk”. The method further tries to use as few arbitrary parameters as possible and the assumptions are limit to the maximal extend.
We present one graphical method that could be used in a discussion with the investor, and a risk classification that is so simple that it can be used on written communication. Ideally the risk class should be printed on each fund information sheet, so that investors can compare all investments over all different distributors.