A conservative investor has a well-diversified portfolio but is still concerned about two things. First, he is concerned about the downside risk and secondly, he is concerned whether he is earning a sufficient rate of return of compensate for the total risk he is assuming. How could you quantify these concerns for this investor.

Answer rating: 100% (QA)

Heres how to quantify the investors concerns Downside Risk There are a few ways to quantify downside risk Downside Deviation This measures the volatil... View the full answer