FYI: Risk, in Wall Street parlance, is volatility. Higher volatility in a stock equals higher potential losses, and, as conventional wisdom dictates, investors must adjust their return expectations accordingly. That’s only half of the risk story. Volatility, beta, r-squared, or whatever market risk metrics you prefer, rely on backward-looking trading data and fail to capture what Donald Rumsfeld once called “unknown unknowns.”
Regards,
Ted
https://www.barrons.com/articles/tech-stock-risks-1539985766?mod=djem_b_Weekly Feed for Barrons Magazine
