Four ways to manage risk in your share portfolio
Mitigating risk is an important exercise for any investor in order to preserve capital. The main objective of any portfolio is maximum returns, however this can only be achieved if risk is managed correctly. In this article we outline four ways to reduce risk and therefore optimise performance. 1. Calculating beta One way to mitigate risk in the portfolio is the look at the beta of each stock. Beta measures how the stock fluctuates compared to the broader market. A …