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.


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