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Risk Return Graph

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In the investing world, the dictionary definition of risk is the chance that an investment’s actual return will be different than expected. Technically, this is measured in statistics by standard deviation. Risk means you have the possibility of losing some, or even all, of our original investment.

Low levels of uncertainty (low risk) are associated with low potential returns. High levels of uncertainty (high risk) are associated with high potential returns. The risk/return graph is the balance between the desire for the lowest possible risk and the highest possible return.

Below chart will show the type of funds come in which part of risk-return graph.

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