TY - JOUR T1 - The Volatility of Relative Performance as a Measure of Risk JF - The Journal of Investing SP - 39 LP - 44 DO - 10.3905/joi.2000.319422 VL - 9 IS - 2 AU - Brett H. Wander Y1 - 2000/05/31 UR - https://pm-research.com/content/9/2/39.abstract N2 - Although portfolio risk is typically measured by the standard deviation of returns, when performance is compared against a specified benchmark risk can also be described as the variability of the difference in return between the portfolio and the benchmark. By quantifying the actual and potential volatility of relative returns, clients and portfolio managers can gain valuable insight into the performance of their portfolios. Understanding risk from this point of view helps explain why clients and managers evaluate strategic alternatives and their impact on portfolio returns differently. ER -