IDEAS home Printed from https://ideas.repec.org/h/spr/sptchp/978-3-658-41021-6_2.html
   My bibliography  Save this book chapter

Risk

In: Applied Fundamentals in Finance

Author

Listed:
  • Enzo Mondello

    (CfBS Center for Business Studies AG)

Abstract

As with returns, there are different measures of risk, and it is difficult to find a general consensus on how to define risk. The perception of risk varies among market participants and depends, among other things, on the composition of the portfolio, the type of investor (private or institutional), and the investor’s attitude to risk. For a pension fund or insurance company, for example, the risk is that liabilities are not covered by assets. The risk of a mutual fund is characterised by the deviation of the portfolio’s return from a benchmark. A private investor, on the other hand, defines risk as the possibility of their investment decreasing in value as the result of a loss. In this chapter, various risk measures are presented. The variance or standard deviation as well as downside risk measures, such as the semi-standard deviation and the value at risk, are discussed.

Suggested Citation

  • Enzo Mondello, 2023. "Risk," Springer Texts in Business and Economics, in: Applied Fundamentals in Finance, chapter 2, pages 29-61, Springer.
    • Handle: RePEc:spr:sptchp:978-3-658-41021-6_2
    DOI: 10.1007/978-3-658-41021-6_2
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sptchp:978-3-658-41021-6_2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.