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Risk and Return

Now, let's talk about RISK and RETURN.

Risk is typically measured by the potential for loss in the value of your investments. What about return? Return is the profit or loss on your investments.

Deciding how much risk to take is not just based on financial factors; it is also based on emotion. Some people are not comfortable watching the value of their investments go up and down with the markets. They have a lower risk tolerance. Others may be better able to handle this volatility.

They are focusing more on long-term results and not reacting to short-term events. Regardless of your risk tolerance, a successful investment strategy should give you the maximum potential return for your investment comfort level.

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