Shortfall Risk

[oryan5000]

I see Shortfall Risk in the curriculum twice, once as an equation and once as a different concept:

Shortfall Risk = Expected Return - 2 * St Dev

Concept in Liability Relative Investing: Shortfall Risk is the risk of having insufficient assets to pay obligations when due

Why would they use the same word for two different concepts?

[S2000magician]

@oryan5000

I see Shortfall Risk in the curriculum twice, once as an equation and once as a different concept:

Shortfall Risk = Expected Return - 2 * St Dev

That looks an awful lot like an equation to me.

[foshizzle]

It’s the same concept. The formula form is in the context of individual investors.