What is Plan Risk vs Benchmark Risk?

Plan Risk vs. Benchmark Risk


This chart compares the Plan’s asset-weighted risk (volatility) of all fund holdings over a time period to the asset-weighted risk (volatility) of the Plans asset class benchmarks.  The risk is expressed as the standard deviation of monthly returns over the time period in question (generally 7 yr or 5 yr periods).  This is the Plan Risk.  The Plan risk is compared to the Benchmark Risk in the column chart.  The risk (volatility) of the plan’s asset weighted benchmarks is calculated as the standard deviation of monthly returns of the asset class benchmarks over the time period in question (generally 7 yr or 5 yr periods).  


Plan Risk vs. Benchmark Risk This chart compares the Plan’s asset-weighted risk (volatility) of all fund holdings over a time period to the asset-weighted risk (volatility) of the Plans asset class benchmarks. The risk is expressed as the standard deviation of monthly returns over the time period in question (generally 7 yr or 5 yr periods). This is the Plan Risk. The Plan risk is compared to the Benchmark Risk in the column chart. The risk (volatility) of the plan’s asset weighted benchmarks is calculated as the standard deviation of monthly returns of the asset class benchmarks over the time period in question (generally 7 yr or 5 yr periods).