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When measuring the risk of an asset: one cannot use other investments to evaluate the asset's risk. it is necessary to incorporate uncertainties that are
When measuring the risk of an asset:
one cannot use other investments to evaluate the asset's risk.
it is necessary to incorporate uncertainties that are not quantifiable
one must remember that the concept of risk applies only to financial markets, not to financial intermediaries.
one must measure the uncertainty about the size of future payoffs.
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