The degree of risk in your portfolio varies with both the type of stocks you own and your time horizon. That's why it's critical to be clear about your financial objectives. For instance, small-capitalization and emerging growth stocks are typically more volatile than blue-chip and high-yielding stocks, and extreme volatility can mean extreme risk, at least for the short term. But with an investment time horizon stretching far into the future -- that is, with a long-term growth objective -- the element of risk may be mitigated.