CFA Level 3
Portfolio Management and Wealth Planning

Measuring Portfolio Sensitivity to Market Movements

Easy Risk Management Measuring Risk

John, a portfolio manager, is evaluating the risk profile of an investment portfolio composed primarily of equity securities. To measure the overall risk of the portfolio, he considers several metrics, including standard deviation, beta, and Value at Risk (VaR). John is particularly focused on determining how much the portfolio's returns are likely to fluctuate relative to the overall market.

Which of the following risk measures would best help John understand the portfolio's sensitivity to market movements?

Hint

Submitted2.6K
Correct2.3K
% Correct88%