Risk-parity portfolios weight asset classes by volatility, and use modest leverage to boost returns while keeping volatility manageable. This article will walk you through a simplified example of how ...

Learn what active risk is and how to calculate it. Understand the methods to evaluate active risk in portfolios and explore examples of funds outperforming benchmarks.

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a ...