One school of thought is that value stocks are
riskier than the market as a whole and investors are compensated with higher expected returns for the additional risk.
Not exact matches
«In the long run, dividend - paying stocks are slightly less
risky — and more rewarding —
than the equity
market as a
whole,» he says.
They may want to manage volatility by investing in less -
risky, high - quality companies rather
than in the
market as a
whole, even at the cost of slightly lower returns.
This limits your potential rate of return
as well, and is still significantly more
risky than leaving your cash in an Aussie bank (after all, the
whole market can fall), but it might strike the right balance for you.