Security Risk Mitigation

security risk mitigation

1. What are the two components of the total risk of a security and how can these be mitigated? Are there any others you can think of?  Have you used any of these tools and if so did you find them useful?

 

Beta

2. Why is beta the appropriate measure of risk for a single security in a large portfolio?  Do you use beta when selecting stocks and if not will you do so now?

 

Time Value of Money

3. What is Time Value of money, why is it important and why is it less important in 2008-2015?

 

Investing in stocks

4. How do you invest in stocks?