Making Headlines

In her article, "Less Risk, More Reward," Shannon Zimmerman of The Motley Fool claims that the term "risk/reward profile" has become "calcified" from overuse, and prone to generalizations like, "small-cap stocks are riskier than their bigger brethren but offer the greater potential for reward." Zimmerman writes that prudent investors should look beyond these over-simplifications, given that the performance of the Russell 2000 Index has rewarded investors in a "little fish rally". She mentions Royce Pennsylvania Mutual Fund (PENNX) as one of the small-cap mutual funds that has allowed investors to participate, with an admirable risk-reward profile. Please click here for more details on the Funds volatility/risk measures as of 6/30/08.