Archives – Michael Mauboussin: Ruminations on RiskVW Staff
Michael Mauboussin Ruminations on Risk Beta Versus Margin of Safety 3 August 2001
The concept of risk plays a central role in the investment process. Yet risk is an elusive concept ¾ difficult to define, quantify and integrate.
In this report, we consider two senses of the term risk. The first is what is mainstream in finance circles: you can measure risk by seeing how much a stock bounces around versus “the market.” You can quantify this measure of risk through variance. The higher the variance¾the larger the swings in relative price ¾ the riskier the stock. The second sense is . . .
This content is exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here
If you are subscribed and having an account error please clear cache and then cookies if that does not work email firstname.lastname@example.org and we will get back to you as quick as humanly possible