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What are the risk measures?

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Date10/27/2020 2:28:10 PM
PriceUSD 100.00
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Risk metrics are statistical metrics that are historical predictors of investment risk and volatility, and are also key components of modern portfolio theory (MPT). MPT is a standard financial and academic methodology for evaluating the performance of a stock or equity fund against its benchmark index.


There are five main measures of risk, and each provides a unique way of assessing the risks involved in the investments under consideration. The five measures include alpha, beta, R-squared, standard deviation, and Sharpe ratio. Risk measures can be used individually or together to conduct a risk assessment. When comparing two potential investments, it is wise to compare, for example, to determine which investment carries the most risk.
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Risk metrics are statistical measures that are historical predictors of an investment's risk and volatility.
Risk metrics are also key components of Modern Portfolio Theory (MPT), which is a standard finan
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