Deviation risk measure

Deviation risk measures are tools used in finance and risk management to assess the variability or dispersion of returns from an expected return, and they can indicate the level of risk associated with an investment or portfolio. These measures go beyond basic metrics like mean returns by focusing on how much returns deviate from their average (mean) over a specific period. Several key concepts are related to deviation risk measures: 1. **Standard Deviation**: This is the most common measure of deviation risk.