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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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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