# Risk Measures

Risk Measures are historical predictors of investment risk and volatility and major components in modern portfolio theory (MPT).

# Risk Measures

**Risk Measures** are historical predictors of investment risk and volatility and major components in modern portfolio theory (MPT).

## Explanation of Risk Measures

MPT is a standard financial and academic methodology for assessing the performance of a stock or a stock fund compared to its benchmark index.

Five measures of risk are: Alpha, Beta, R-Squared, Standard Deviation, and Sharpe Ratio.