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The first mechanism involves differential measurement error, and the second one involves inconsistent proxy measures of risk.
Several measures of risk aversion receded slightly.
Traditional daily measures of risk can't capture a company's full exposure when market fundamentals are shifting.
And I don't want to get into measures of risk neutrality here.
Beauchamp JP, Cesarini D, Johannesson M. The Psychometric and Empirical Properties of Measures of Risk Preferences.
Beta is one of the best-known measures of risk used by investors.
Shadow reinsurance undermines the measures of risk used by regulators and others to gauge insurers' health.
Another was the reliance of the control team on flawed measures of risk.
Their quantitative measures of risk saw more demand after Hurricane Andrew ten years ago.
Experimental measures of risk, time, and social preferences do not exhibit much stability.
The analysis emphasises that flood-risk assessment must account for two measures of risk.
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