How much portfolio risk do you absorb for your ROI?

Investors who are concerned about market volatility should examine their investment choices from all angles when constructing a portfolio — evaluating not only return, but risk too.

There are a variety of risk measures that may come in handy. Of course, numbers don’t tell the whole story, but they may help you determine whether owning a particular investment is consistent with your personal risk tolerance.

You may want to review the following risk measures:

* Alpha

* Beta

* R-Squared

* Sharpe Ratio

* Standard Deviation