American Mutual Fund Quote

Most reasonable investors view market volatility as an opportunity to invest at a favorable price or to sell short against a bearish trend. American Funds' investment highlights are automatically generated signals that are significant enough to either complement your investing judgment regarding American Funds or challenge it. These highlights can help you better understand the position you are entering and avoid costly mistakes.

Investors will always prefer to have the highest possible return on investment while minimizing volatility. American Funds market risk premium is the additional return an investor will receive from holding American Funds long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in American Funds. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Although American Funds' alpha and beta are two of the key measurements used to evaluate American Funds' performance over the market, the standard measures of volatility play an important role as well.