Holicent
VIP Contributor
The risk percentage is the percent of your investment that will be lost if you fail to make money. The formula for calculating the risk percentage is:
Risk Percentage = (Profit Ratio – Loss Ratio) ÷ Profit Ratio.
For example, let's say you are investing in a business with a profit ratio of 30% and a loss ratio of 70%. This means that if your investment loses money, then you will lose 30% of your investment (70% – 30%). If this happens three times in a row, then you will have lost all of your money. So it's important to know how much money we are willing to lose before we invest our hard earned money into something. There are many ways to calculate the risk percentage in a given investment course. It will depend on your objectives, timeframe and the type of investment you want to do. What do you think?
Risk Percentage = (Profit Ratio – Loss Ratio) ÷ Profit Ratio.
For example, let's say you are investing in a business with a profit ratio of 30% and a loss ratio of 70%. This means that if your investment loses money, then you will lose 30% of your investment (70% – 30%). If this happens three times in a row, then you will have lost all of your money. So it's important to know how much money we are willing to lose before we invest our hard earned money into something. There are many ways to calculate the risk percentage in a given investment course. It will depend on your objectives, timeframe and the type of investment you want to do. What do you think?
