Portfolio risk is the general term for riskiness or dispersion of returns on a portfolio of assets. There are several different ways risk can be measured and interpreted. It can be measured using the stream of values of a portfolio, like the NAV on a mutual fund, or from a bottom-up calculation using individual positions and weights. The latter requires covariance calculations between all combinations of stocks. Portfolio risk can also be compared to other portfolios, or benchmarks, on a relative basis.
Synonym: portfolio variability
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to learn the calculations of
portfolio risk .
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