Morningstar Risk Rating

Morningstar Risk Rating

A rating system that measures how often a fund loses money compared to the risk-free rate of return (T-bill return).

Notes:

A rating of 1 is considered average for each class of funds. So, if a mutual fund's risk rating is 1.25, then it is 25% more risky than the other funds in its class.

See also: Beta, Diversification, Mutual Fund, Risk, Systematic Risk, T-Bill