upside risk

6 examples (0.03 sec)
  • Info In investing, upside risk is the uncertain possibility of gain. more...
  • An alternative measure of upside risk is the upper semi-deviation.
  • It is important to distinguish between downside and upside risk because security distributions are non-normal and non-symmetrical.
  • The dual-beta model allows investors to differentiate downside risk - risk of loss - from upside risk, or gain.
  • Thus, investors can use the dual-beta approach to minimize their downside risk and maximize their upside risk/gain which cannot be achieved through the use of standard beta and the standard CAPM.
  • That is why it is crucial to not simply rely upon the CAPM, but rather to distinguish between the downside risk, which is the risk of losses, and upside risk, or gain.
  • Looking at upside risk and downside risk separately provides much more useful information to investors than does only looking at the single Capital Asset Pricing Model (CAPM) beta.