2011 | OriginalPaper | Chapter
Risk: Standard Deviation and Beta
Author : Javier Estrada
Published in: The Essential Financial Toolkit
Publisher: Palgrave Macmillan UK
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This chapter discusses two very widely used definitions of risk, standard deviation and beta, both of which are at the heart of modern finance. Some say that risk, like beauty, is in the eyes of the beholder. Maybe it is, but even if that is the case, understanding the relationship between the standard deviation, beta, and risk is essential for anyone who wants to have a basic knowledge of finance.