What exactly does the “risk meter” measure?
The risk meter is intended to serve mainly as a guide to income security. However, since share price also affects total returns, the risk meter also provides an assessment of how stable total returns may be going forward, including both income and share price. For example, a “Low” risk security is deemed to offer secure income and a steady or rising share price. Together, the risk that total returns will be negative is considered low. A “moderate” risk security is considered to offer reasonably secure income and share price. A “volatile” security is deemed to be a higher risk/higher reward income play that offers income and a share price that may fluctuate sharply.
