APPROACHES TO RISK MEASUREMENT IN STRATEGIC AND FINANCIAL MANAGEMENT .1.

The purpose of this paper and the following one (part II.) is to present approaches to risk-return relationships received from the literature of strategic and financial management. This part of the paper is devoted to so called classical approaches to risk-return relationships, which use variance is a risk measure and mean return. Other measures of risk, such as those used in CAPM (Capital Asset Pricing Model) arc also described. Multiple measures of risk will be described in the second (part II.) of the paper, where they will be also confronted with the above described classical approaches.