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Understanding Investment Risk
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[QUOTE="raaman, post: 340412, member: 23419"] In the world of investing, understanding and managing risk is as important as seeking profitability out of such investment. A well-balanced investment portfolio can help alleviate risks without sacrificing the profit potential. Therefore you have to explore effective strategies to reduce your portfolio risks, in order to ensure that your investment is safe while you pursue your long-term financial goals. Investment risk refers to the possibility that the value of your investment may decline or that the returns from that investment may not be as per your expectations. Each type of investment has a different level of risk associated with it. It is influenced by market trends, economic situation, political factors, and the entity itself in which it is invested. [/QUOTE]
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