Modern Risk Measurement

Abstract

During the past decade, there has been a revolution in investment management. If you pick up any professional investment journal in the States you will find that the articles and advertisements continually refer to Modern Portfolio Theory or MPT. At the heart of MPT is the notion of risk measurement. And nowadays, portfolio managers in almost any large American investment institution use modern risk measurement to analyse their portfolios. They realise that investment is as much about risk as return and that professionalism in their approach to risk is crucial. There are more than 20 institutions providing risk measures, and the investment community spends over $200 million per annum on MPT services alone.

Citation

Dimson, E. and Marsh, P.R. (1979), "Modern Risk Measurement", Managerial Finance, Vol. 5 No. 1, pp. 80-86. https://doi.org/10.1108/eb013439