Investing Podcast: Building a Portfolio to Meet Your Personal Financial Goals

Overview

Individual investments in your portfolios may be viewed as “bundle" of different risks: term risk, default risk, equity risk, alpha risk, illiquidity risk, and leverage risk. Some investments—such as the 30-Year U.S. Treasury Bond—carry only a single type of risk (term risk), while more complex investments or fund vehicles such as venture capital funds may embed multiple types of risk (term, equity, alpha, illiquidity). Understanding the types of risk available to investors and matching those appropriately to the characteristics of one's goals is the key to success.

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