Downside risk refers to the potential for an investment to lose value, or the chance that the actual return on an investment will be less than the expected return. It specifically focuses on negative outcomes, contrasting with broader risk assessments that also consider potential gains. Downside risk is often measured in several ways, including: 1. **Standard Deviation**: While this measure captures total risk (both upside and downside), it can be informative when assessing overall volatility.
Articles by others on the same topic
There are currently no matching articles.