How to Measure and Manage Risk

Risk is one of the most powerful and dangerous concepts in finance – powerful because it allows individuals and companies to earn huge returns, but dangerous because it can cause their bankruptcy. How do you measure financial risk, what is the relationship between risk and return, and how can you – surprisingly – reduce your investment risk without sacrificing any returns? This lecture will explain why even the simple idea of 'higher risk means higher return' is actually incorrect.A lecture by Alex EdmansThe transcript and downloadable versions of the lecture are available from the Gresham College website:https://www.gresham.ac.uk/lectures-and-events/manage-riskGresham College has been giving free public lectures since 1597. This tradition continues today with all of our five or so public lectures a week being made available for free download from our website. There are currently over 2,000 lectures free to access or download from the website.Website: http://www.gresham.ac.ukTwitter: http://twitter.com/GreshamCollegeFacebook: https://www.facebook.com/greshamcollegeInstagram: http://www.instagram.com/greshamcollegeSupport the show