Two Methods of Measuring Risk ( Measures of Risk ). Risk arises from the expected volatility in the asset’s return over time caused by one or more of the following sources of returns on Investment. Fluctuations in expected income.Fluctuations in the expected future price of the asset.Fluctuations in the amount an investor can reinvest and fluctuations in returns … [Read more...] about Two Methods of Measuring Risk – Absolute and Relative Measure of Risk