Asked • 04/04/19

What are alternative measures of risk?

In finance, the variance of the returns of a security are used as a proxy for the associated risk of the security. I've seen some books include sentences like "if you take variance as a measure of risk...". In what way might variance be an incomplete measure of risk? What alternatives do we have?

1 Expert Answer

By:

Jose H. answered • 04/08/19

Tutor
5 (4)

Former Corporate Wealth Management Advisor

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