While individuals invest more money in Treasury bills, bank accounts, bonds and real estate than in equities, there has always been a mystique and allure about the stock market. To many investors, it offers an irresistible challenge. While the historical returns are high, the volatility of the stock market creates risk.
Sometimes, this risk makes itself very apparent; other times it is more subtle. However, some risk is always present because it is the reason for the higher returns. Those who wish to earn more than the Treasury bill rate must assume risk. This booklet is designed to help you understand risk and its relationship to return. It will also provide guidelines for the long-term successful management of your stock portfolio.