By Nick French

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In this way it is possible to see whether different risk measures produce asset allocations that are essentially the same or radically different. e. the assets chosen and the weights assigned to the them, are essentially the same then there is little to be gained from using one risk measure or another. In contrast, if the portfolio compositions produced by the different risk models are substantially different, the choice of risk measure becomes crucial to the investor. The paper is structured as follows.

Indeed, the current RICS guidance suggests that verbal reporting is the preferred mechanism of alerting the client to the uncertainty within the valuation. Verbal reporting In the 2003 edition of the RICS Appraisal and Valuation Standards, there is a guidance note relating to uncertainty in valuation. In this guidance (RICS, 2003, GN5) it states that: The uncertainty of valuation All valuations are opinions of the price that would be achieved at the valuation date. The degree of certainty will vary significantly.

Those distributions allow the valuers to know about the range of the outcomes and the probability of the values at each point of the distribution (Evans, 1992). In statistics there are many forms of probability distributions, which describe both the range of the values and the likelihood of their occurrence. The normal distribution (a bell-shape distribution) is the most known and its parameters (the mean and the standard deviation) are the most used. The variability of valuation then depends on the variability of the inputs.

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