FEATURED IN: BURSAMKTPLC, NOVEMBER 1, 2016.
Risk means different things to different people. Typically, for professionals like financial planners, risk means volatility. They like to use technical terms like standard deviation, beta and alpha to show the vulnerability and relativity of risk against market and peers.
How well you understand these jargons? Do they mean anything to you? Would negative news such as political instability, weakening of the Ringgit and economic slowdown be more destructive to your heart than all these technical numbers? Psychological studies show that the layman investor sees Risk as an enormous problem and defines it differently compared to professionals’ interpretation. …
