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Total Risk (Sigma) and Beta Sigma theta, or standard deviation, measures an investment's total risk (volatility). Beta, measures an investment's exposure (loading) to the market
Total Risk (Sigma) and Beta Sigma theta, or standard deviation, measures an investment's total risk (volatility). Beta, measures an investment's exposure (loading) to the market risk. What is the mathematic relationship between an investment's total risk (sigma) and its loading in market risk (beta)? which one matters more as an output for your clients? Which one matters more as an input for designing your market timing related investment strategy
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