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Calculating Risk

Calculating Risk

by Md. Atiqur Rahman Sumon -
Number of replies: 0

variance and standard deviation used to quantify and measure risk
ØMeasures the spread in the probability distribution
ØVariance of returns: σ² =å (Ri - E(R))²pri
ØStandard deviation of returns:

  σ =(σ²)1/2

ØEx ante rather than ex-post σ relevant