Examlex
What is ratio analysis? Explain the four different types of ratios and how each is used.
Risky Stock
Shares of a company with a high level of risk, often due to volatility, uncertainty, or both, potentially leading to high returns or losses.
Diversified Portfolio
An investment portfolio constructed with a mix of assets to reduce exposure to risk associated with any single asset or asset class.
Market Risk
The risk of losses in investments due to factors that affect the entire market, such as economic shifts or political events.
Asset-Specific Risk
The risk associated with holding a particular asset, which can be reduced through diversification.
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