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A comfort level here requires an understanding of Statistics;
including, single- and multi-variable linear regression.

Intermediate

Stock risk is a general term for the variability of returns. The two most common absolute measures are variance and standard deviaton. Stock risk can also be measured relative to other stocks with measures such as covariance and correlation. For risk forecasting and performance attribution applications stock risk is decomposed into specific risk and systematic risk.

Synonym: stock variability

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True

**Bev: ***I'm amazed that four *
stock risk * measures
all start with demeaned returns.*

**Ann: ***Yes, it's a powerful concept hidden
behind a bad name.*

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Keywords:

stock risk

variability

variance

standard deviation

co-movement

covariance

correlation

risk modeling

specific risk

systematic risk

volatility