Trade of the month: Risk assessment
The risk management of structured products is much different from that of funds and ETFs
Following last month's investigation of the views of regulators on the risk and complexity of structured products, this issue's analysis covers risk assessment.
Before considering how we might measure the risk when investing in structured products, it is worth considering how risk is measured for funds and exchange-traded funds. The most common way to measure the risk level of these investments is to calculate the fund price or net asset value (NAV) and historic volatility over a certain time
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