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However You’re Defining Risk in This Scary Stock Market, You’re Probably Wrong

Mark Hulbert, MarketWatch

When the 10% loss is produced when the broad stock market lost 20%, and the 10% gain occurred when the market rose 20%. Because, as defined by some financial advisers and other investment professionals, risk relates to lagging the market — “negative alpha,” in technical-speak. Notice that both investments have an expected value of $101.