How is the risk level for assets on the ETF Platform calculated?

Question

Accepted Answer

The Risk Level is a measure of risk, expressed as a percentage, whereby in any given year, there is a 99% probability that you won’t lose more than this percentage in terms of the portfolio’s value.
These are the Risk Level brackets:
Very Conservative: Up to 7%
Conservative: 8-13%
Moderate: 14-19%
Balanced: 20-25%
Aggressive: 26-32%
Very aggressive: 33% and more
For example, in a worst-case scenario, there's a 99% chance a Balanced portfolio won't lose more than 25% of its value in any given year.
Generally, a higher Risk Level percentage denotes a more risky portfolio, and thus should be accompanied by a longer-term investment horizon.