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Understanding the 100 Percent Downside in Risk Management
Being an eternal optimist, one of the things I found hard to fathom was the unlimited downside risk to any transaction. When I make a 5000 $ investment, the assumption is that the downside risk is limited to 5000 $ only. This is especially compared to the unlimited potential that any increase has. While this might be true on face value, the reality is that a 5000 $ loss on a 5000 $ investment is a 100% loss and all your investments are in this, you will be wiped out. This imp

Santosh Kumar
3 days ago2 min read
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