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English to German translations [PRO] Bus/Financial - Finance (general)
English term or phrase:proxy for risk
Normal distributions are the bedrock of finance, including the random walk, capital asset pricing, value-at-risk (VaR), and Black-Scholes models. Value-at-risk models, for exalmple, attempt to quantify how much loss a portfolio may suffer with a given probability. While there are various forms of VaR models, a basic version relies on standard deviation as a measure of risk. Given a normal distribution, it is relatively straightforward to measure standard deviation, and hence risk. However, if price changes are not normally distributed, standard deviation can be a very misleading proxy for risk.
Es geht wieder um das Them Finanzwissenschaft. Leider kann ich momentan mit "proxy for risk" nichts anfangen. Was könnte das bedeuten?