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Products January 3, 2002
RiskMetrics Puts out New Risk Scale
March 1, 2002 (PLANSPONSOR.com) - Investors may be
able to get a clearer picture of the risks they are assuming
with certain investments following the launch of a new risk
measure by RiskMetrics Group.
Reported by Fred Schneyer
The company announced in a press release that its RiskGrades Suitability Scale measures the risk of different investment strategies such as conservative, growth, and aggressive.
The new scale covers exchange-traded equities and securities and measures volatility on a scale from zero for cash investments to 1,000 for the most speculative portfolio, the company said.
For example, conservative investments measure 25 on the RiskGrades scale while an aggressive strategy gets a 100 measure.