RT Journal Article SR Electronic T1 The Volatility of Relative Performance as a Measure of Risk JF The Journal of Investing FD Institutional Investor Journals SP 39 OP 44 DO 10.3905/joi.2000.319422 VO 9 IS 2 A1 Brett H. Wander YR 2000 UL https://pm-research.com/content/9/2/39.abstract AB 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.