How Do I Select the Correct Risk Level for My Portfolio?

One of the key decisions an investor has to make is what level of portfolio risk to assume. If the stock allocation is too low, the investor runs the risk of inflation diminishing the portfolio value. If the stock allocation is too high, the investor may panic and sell-out every eight years when we have a Bear stock market. This short story explores the issue of portfolio risk.
After reading this short story, you will have enough information to make your own well-informed asset allocation decision.