Investing in anything, even fun things like video games or toys, can sometimes mean losing money. This news talks about 'downside risk,' which is just a fancy way of saying the chance of losing money on an investment. It's important to understand this risk before you invest!
- Downside risk is the chance your investment goes down in value.
- Investors use special tools to measure this risk.
- One tool is the Sortino Ratio, which helps see how much extra return you get for taking on extra risk.
| Term | Kid-Friendly Explanation |
|---|---|
| Downside Risk | Chance of losing money |
| Sortino Ratio | Tool to measure risk vs. reward |
