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SECTION III: INVESTMENT PRINCIPLES
Managing Risk Expectations

Risk is an important concept because there is a direct relationship between the risk exposure of an investment and its reward potential. Managing your customer's risk and reward expectations begins with communicating to your customer a realistic picture of the risks as well as rewards associated with the different types of investments. It is imperative to convey the risk exposure of various investments and to match customers with specific investments associated with their acceptable risk comfort levels.

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