The Manufactured Idea of Risk

How you will lose money letting the market determine your risk.

I just finished the book All the Devils Are Here by Bethany McLean and Joe Nocera. (Great book, by the way) This book provides some more depth on the financial crisis in '08. 

The book spurred some thoughts on risk, so I decided to do a short write-up on the misunderstood concept.

The common opinion is that the higher the return, the higher the risk. The …