a distribution in its calculation of risk. Because of this it has been argued that it is crucial to not simply rely upon the CAPM, but rather to distinguish between the downside risk, which is the risk concerning the extent of losses, and upside risk, or risk concerning the extent of gains. Studies indicate that "around two-thirds of the time standard beta would underestimate the downside risk." Examples Value at Risk Average value at risk The semivariance is defined as the expected squared deviation from the mean, calculated over those points that are no greater than the mean. Its square root is the semi-deviation: where is an indicator function, i.e. Below target semi-deviation for target defined by . See also References External links Preparing for the Worst: Incorporating Downside Risk in Stock Market Investments, 1st Edition. Financial risk modeling