# Downside risk

## Risk of the actual return being below the expected return / From Wikipedia, the free encyclopedia

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**Downside risk** is the financial risk associated with losses. That is, it is the risk of the actual return being below the expected return, or the uncertainty about the magnitude of that difference.^{[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]}^{:ā3ā} The statistic *below-target semi-deviation* or simply *target semi-deviation* (TSV) has become the industry standard.^{[4]}