Unit-2 Risk and Return Analysis
Meaning and Concept of Risk and Return
Risk Risk in finance refers to the uncertainty regarding the future returns on an investment. It ...
Computation of Return
When investing in a financial asset, the primary goal is to earn a return on that investment. The...
Concept of Total Risk
Total Risk in an investment context refers to the overall uncertainty or variability of returns t...
Systematic and Unsystematic Risk
Systematic Risk (also known as market risk or non-diversifiable risk) is the risk that affects th...
Measurement of Risk
Risk is quantified by the variability of returns, through assigning probabilities and calculating...
Use of Beta in Estimating Returns
Beta is a key financial metric used to measure the sensitivity of a stock's return in relation to...
Covariance, Correlation Coefficient
Interactive Risk through Covariance When two securities are held in a portfolio, the risk involve...