FYI: Risk measurement is a critical part of investing because it allows you to quantify the level of uncertainty in your portfolio. To that end, portfolio managers rely on several risk metrics when making asset allocation or security selection decisions.
When it comes to investing, risk can be quantified in several ways, with the most common measurements being standard deviation, Sharpe ratio, and beta. These and other measurements can be further broken down into two categories:
.Absolute risk metrics
.Relative risk metrics
In each case, risk measures quantify uncertainty of an investment outcome over a specific time period. Let us take a deeper look into these risk metrics.
Regards,
Ted
https://mutualfunds.com/portfolio-management/know-different-ways-evaluate-portfolio-risk/
