7. Key Takeaways

  • There are several definitions of risk, but none is universally accepted.
  • The standard deviation is a conventional measure of risk.
  • However, the standard deviation is not an adequate measure of risk if returns are not normally distributed.
  • VaR, ES, LPSD are measures of downside risk.

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Module 1: What Is Risk? Copyright © by Tsvetanka Karagyozova is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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