What Is the Russell 2000 Index?

The Russell 2000 Index is an index of small-cap stocks. It is a subset of the Russell 3000 Index, which includes the 3,000 largest publicly-traded companies in the United States. The Russell 2000 is widely used by investors as a benchmark for small-cap stocks. How does the Russell 2000 work? The Russell 2000 Index is … Read more

Risk-Return Tradeoff Definition.

The risk-return tradeoff is the relationship between the level of risk and the level of return. The higher the level of risk, the higher the expected return. The lower the level of risk, the lower the expected return. The risk-return tradeoff is a fundamental concept in finance and is the basis for the modern portfolio … Read more