The Uninformed Risk Scale

An established company has been around for many years, investing all of your money in one large cap share. That's considered a nine out of 10 on the risk scale. A company that's less established hasn't been around for a while and its future is not so well predicted as a large company. So that's the uninformed risk scale. We're now going to move on to the informed risk scale. It's the same scale from zero to 10, but we're now taking into account three flavors of risk. The red block from seven out of 10 to 10 out of 10 covers all the positions from seven to 10.

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