#absolute measure

Two Methods of Measuring Risk

Two Methods of Measuring Risk

Two Methods of Measuring Risk ( Measures of Risk ) – Risk arises from the expected volatility in asset’s return over time caused by one or more of the following sources of returns on investment:

▪     fluctuations in expected income

▪     fluctuations in the expected future price of the asset

▪     fluctuations in the amount an investor can reinvest and fluctuations…