Frequently people equate the economy’s health with the health of the securities markets, but they are often not in sync. While the two are closely intertwined, they usually do not move in lock step.
In college finance programs and the CFA curriculum, the degree that a security’s price fluctuates is taught to be the measure of “riskiness” of a security. Statistically, standard deviation (SD) is the measure of this “risk”. But is it a true measure of risk?
