Risk Management
Stress Test
Definition
What is Stress Test?
An analysis of portfolio performance under severe but plausible scenarios.
Example in practice
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Related Terms
Risk Management
Scenario Analysis
The estimation of outcomes under a defined combination of assumptions.
Risk ManagementSensitivity Analysis
The study of how an output changes when one input changes.
Risk ManagementBenchmark Risk
The risk that managing too closely to or too far from a benchmark produces undesirable results.
Portfolio TheoryCapital Asset Pricing Model
A model linking expected return to the risk-free rate, market risk premium, and an asset's beta.