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.

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.

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