Expectations of investing have been heavily skewed by alluring headline yields on product ads that are primed to attract, but not inform. It is extremely common for investors—novices to seasoned—to chase after the highest returns without paying attention to the downside risks.  Understanding risk in investing is important for a few reasons. Firstly, without a clear sense of what risk entails, investors may take too little or too much of it, both of which can be costly.  Secondly, investing is as much an emotional game as it is a number one. Being able to ascertain one’s risk tolerance is key to encumber impulsive behaviours, like panic-selling at market lows. Thirdly, understanding risk means that you understand the reward you deserve. We have all heard of the general rule in investing: high risk, high reward. The investment product that you park your hard-earned money in should provide returns that commensurate with...