Techniques Used for Measuring Risk | Risk Management

The following points highlight the three main types of risk measurement techniques in relation to investment. The techniques are: 1. Capital Asset Pricing Model (CAPM) 2. Value at Risk (VAR) 3. Monte Carlo Simulation Method for Valuation.   Technique # 1. Capital Asset Pricing Model (CAPM): CAPM is a model based on the proposition that on any stock required rate of [...]