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Essay's paper info
Topic: Business
Number of pages / Number of words: 8 / 2133
Essay's paper body

It is important to

recognize the difference between the risk of an individual security and the risk of the

portfolio as a whole. The risk of a portfolio is less than the average risk of its

holdings, your risk tolerance should be matched to the risk of the overall portfolio and

not to the risk of each security...


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Whereas, someone using a short term trading

strategy and interested in maximization of capital gains may concentrate less on this

factor.

- Time Horizon - The time horizon is the period of time from the present until the next

major change in your circumstances. A good portfolio design will reflect this time

change...


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