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I found an issue with the above but I figured out how to get my end result. For those who are interested here is how it works. The above does give you the correct method for balancing the risks but they are left in terms of the risk itself. if you notice the above final percentages don't equal...

Cool, I think this will work.. Thanks a lot. to the poster earlier, I'm not struggling with the basics i needed information on the math alone. Im not looking for a debate, i trust my strategy and need no help in that category.

Yea, Is there any knowledge on how to balance risk within a portfolio or is this forum dedicated more towards the active trader?

using standard deviation and past data or simple answer software. I really don't want to get into a big convo about the ills of risk analysis. Lets just take the risk percentages as they are. how would you balance them in a portfolio.

But thats not what I'm looking for. I need the risk percentages to balance in the end. the 2% risk stock would need to be a lot larger share of the portfolio to equal the risk of the 9% stock. as far as the value of risk measures , i get it but i really want to know how to do this...

Imagine a portfolio with 4 stocks. One with 9% risk another with 4% risk one with 6% risk and another with 2% risk. How would you weight each stock in order to balance a portfolio like this? Im really looking for the method or formula to balance this portfolio not the actual balance. solving the...