This article was co-produced with Williams Equity Research.
Measuring risk is one of the more abstract and qualitative components of investment and portfolio management. Risk means different things to different people. Whatever risk is to you, it's critical to establish and follow a systematic rather than emotional or reactionary methodology. This is easier said than done. Human nature’s tendency to make emotional decisions is difficult to overcome.
Imagine a quiet accountant enters a Toyota dealership with the intention of paying cash for a lightly used Corolla. A cunning salesman obtains the accountant’s social