Morningstar Risk Rating
A rating system that measures how often a fund loses money compared to the risk-free rate of return (T-bill return). Investopedia Says:
A rating of 1 is considered average for each class of funds. So, if a mutual fund's risk rating is 1.25, then it is 25% more risky than the other funds in its class. Related Terms:
Beta
Diversification
Mutual Fund
Risk
Systematic Risk
Treasury Bill - T-Bill |