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Author: jrr7 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 297  
Subject: Is Risk the same as Volatility? Date: 3/3/2000 9:37 AM
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Traditionally, risk has been quantifiedas some measure of volatility - say, the standard deviation of returns.

More recently there have been some efforts to separate risk into its components. I know of Alpha and Beta, which refer to how well correlated an asset's performance is with the relevant index, and how volatile the asset is compared to the index. I don't know which is which. I know there are others.

I think that there are so many components to risk, it should be possible to generate unlimited greek-letter measures, all of which are somewhat relevant but only serve to hide the real issues going on.

Do you think there is a way (or ways) to measure risk?
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