Online Investor - February, 2001

Spread Your Risk

A simplified approach

"...PortfolioScience translates your risk into hard numbers. After adding your holdings there, you might see that your stocks and funds are expected to lose at most $1,500 in a given day and $7,000 over the next year. If those losses seem to great for you to handle, that's a signal to scale back your risk. You can also see how your portfolio will respond to drastic market moves in the 'Stress Testing' function. PortfolioScience has an added bonus of analyzing risk for equity short sales in addition to the more typical stock and mutual fund holdings..."