Risk
Unsystematic risk
Inflationary risk
Systematic risk
Alpha
Sharpe ratio
Beta
Asset allocation
Growth stocks
Value stocks
Efficient market theory
C Corporation
S Corporation
Limited Liability

EVALUATION OF CUSTOMERS
Risk is the uncertainty that an investment will deliver its expected return.
Before a representative can make suitable investment recommendations
to a client, he must first understand the concept of risk, the different
types of investment risk associated with various investment vehicles,
and the amount of risk that the client is willing to assume.
Clients must understand that every investment carries some degree of
risk. Possible returns from an investment will depend on the amount of risk that is assumed. Among several other factors, the amount of risk assumed essentially depends on the client's financial goals. Remember that representatives have a fiduciary obligation to match their clients with appropriate investments.
