Measuring Risk in Client Portfolios

As a financial advisor, you are tasked with assessing the risk of your client's investment portfolio, which consists of equities, bonds, and alternative investments. To provide a comprehensive risk evaluation, you decide to utilize several risk measurement metrics, including Value at Risk (VaR), standard deviation, and beta. Your client seeks guidance on how these metrics contribute to understanding the risk profile of their portfolio. Discuss each metric's role in measuring risk, the types of risks they highlight, and their limitations in providing a complete risk assessment.