Downside risk  From Wikipedia, the free encyclopedia Jump to:
navigation, search  Downside risk is the financial risk
associated with losses. That is, the risk of difference between
the actual return and the expected return (when the actual
return is less), or the uncertainty of that return.[1][2]  Risk
measures typically quantify the downside risk, whereas the
standard deviation (an example of a deviation risk measure)
measures both the upside and downside risk. Specifically,
downside risk can be measured either with downside beta or by
measuring lower semi-deviation.[3]:3 The statistic below-target
semi deviation or simply target semi deviation (TSV) has become
the industry standard.[4]   Downside risk was first modeled by
Roy (1952), who assumed that an investor’s goal was to minimize
his/her risk. This mean-semivariance, or downside risk, model is
also known as “safety-first” technique, and only looks at the
lower standard deviations of expected returns which are the
potential losses.[3]:6 This is about t