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Entropy as a Measure of Risk. Like beta and volatility, entropy is used to measure financial risk as a measure of randomness. In the world of finance, risk is both bad and good depending on the needs of the investor; however, it is generally assumed that greater risk creates a higher probability for enhanced growth.
Best Answer: Entropy is defined as disorder. The entropy in this case decreases. The water molecules before were bouncing around more when they are in liquid form.When water is frozen, the molecules lose energy to the outside and come closer together, making it more organized. There are no other factors since the entropy clearly decreases.Source(s): http://electron9.phys.utk.edu/phys136d/m...he water molecules before were bouncing around more when they are in liquid form. When water is frozen, the molecules lose energy to the outside and come closer together, making it more organized. There are no other factors since the entropy clearly decreases.