Skip main navigation

Theoretical foundation of enterprise risk - risk and volatility

Modern portfolio theorists do not define risk as a likelihood of loss, but as volatility. Watch this video to find out more.

Watch the video and then summarise what you have learned.

If you ask investors what risk they assume when buying stocks, they likely will respond, “losing money.” Modern portfolio theorists do not, however, define risk as a likelihood of loss, but as volatility, which is determined using statistical measures of variance, such as standard deviation and beta.

This article is from the free online

Enterprise Risk Management

Created by
FutureLearn - Learning For Life

Reach your personal and professional goals

Unlock access to hundreds of expert online courses and degrees from top universities and educators to gain accredited qualifications and professional CV-building certificates.

Join over 18 million learners to launch, switch or build upon your career, all at your own pace, across a wide range of topic areas.

Start Learning now