Whatever you do anytime, it comes with a certain risk, and sometimes we can really measure the level of risk, and more importantly determine whether it is worth taking or not.
For example, it is safer to sit on the couch than crossing the road and is still very risky in the car and drive. However, sometimes it is necessary to take a little risk to achieve your goals.
In the investment world, things are very quantitative, which is easier to calculate the level of risk and possible return. One of the most common ways to measure risk premium is the Sharpe Ratio.
This unique formula is designed to measure an investment against each other and informs the investor of what kind of return they are taking in relation to the risk they are taking.
As you know, itoro has added an easy 1 to 10 risk score on all traders so that copy can understand the risk factor of the person on which they are considering copying. Recently, we are putting together many different CopyFund strategies to make it easier for you to manage a portfolio.
