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The standard deviation or volatility (square root of the variance) of returns.

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βˆ™ 2012-09-12 14:01:44
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Q: What is used as a measure of total risk?
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Related questions

Does standard deviation measure systematic or unsystematic risk?

Standard deviation is a measure of total risk, or both systematic and unsystematic risk. Unsystematic risk can be diversified away, systematic risk cannot and is measured as Beta.


Can bond ratings be used as a measure of the bond's risk?

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Is it correct that Sensitivity is the an absolute measure of risk?

Sensitivity is the an absolute measure of risk


How do you measure the risk of a single asset?

The total risk of a single asset is measured by the standard deviation of return on asset. Standard deviation is the square root of variance. To measure variance, you must have some distribution/ possibility of asset returns. However, the relevant risk of a single asset is the systematic risk, not the total risk. Systematic risk is the risk that cannot be diversified away in a portfolio. Systematic risk of an asset is measured by the Beta. Beta can be found using Regression (between market return and asset's return) or Covariance formula.


What is the instrument used to measure distance in a car?

The instrument used to measure the total distance that a car has traveled is called an odometer.


The nurse explains to the uap that the braden scale is used to measure which client parameter?

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The portion of total risk that remains after unacceptable risk has been determined is .?

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Identify the four key actions used to develop controls and make decisions on risk control measure?

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What does TRACS stand for?

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How should the measure of risk of an asset be interpreted?

Risk is necessary in the investment world. The absolute measure of risk is the standard deviation which is a statistical measure of dispersion. The distribution curve shows how much an asset can deviate from its expected outcome.


How do you measure risk within a firm?

You can measure risk by calculating the risk associated with each project the company decides to take on. A company will generally balance their risks with their expected returns.


What does the acronym TRACS stand for?

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