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In the financial world, more risk equals more return. Less risk equals less return. That is why you see Greece right now paying very high yields on their bonds (it is very risky to invest in a Greek bond right now because they could possibly default). If you buy a basket of 10 risky stocks, and then buy a basket of 10 low-risk stocks, the risky stocks will usually outperform the less risky stocks.
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What is the relationship between financial decision making and risk and return Would all financial managers view risk-return trade-offs similarly?
return is a reward gained from investing or the reward from employing assets in a company. risk is the degree of uncertainty of possible return generated from an investment
Discuss the relationship between financial and decision making and risk and return would all financial manageres view risk return tradeoffs similarly?
there is a direct relationship between financial decision making and risk and return. each financial decision made by the financial manager will have implication for the overall risk of the firm and its potential returns. All financial decisions are ultimately subjective in nature regardless of the amount of objective information collected as part of the decision making process. as a result, not all financial managers view risk return trade offs similarly. however it is expected they such decision making will be consistent with the goal of the investors that the financial manager represents. good luck......
What is the relationship between financial decision making and risk and return?
plz quote me the answer of the above question
What is the difference between risk and exposure?
An exposure consist of the potential financial effect of an event multiplied by its probability of occurrence and risk is with probability of occurrence. Thus an exposure is a risk times its financial consequences.
The risk-return relationship for each financial asset is shown on?
the security market line
Difference between risk and return?
Risk is the possibility of loss by unforseen happenings. it may be categorised as monetary and non- monetary. in financial parlance risk is the possiblity of loss in your investments made (either the capital u had invested, returns or both). return is the expected value from an investment which has a risk associated with it. for ex: investing in stock market has a equity risk involved with it. generally returns are based on risk levels. higher the risk higher the return and the vice versa
Why must risk as well as return be considered by financial manager who is evaluating a decision alternative or action?
why must risk aswell as return, be considered by a financial maneger
Relationship between risk and return?
risk is pre-stage for return...
Why CML is a special case of SML?
CML a special case of SML. While CML represents Return potential and risk involved in all financial asset across the Capital market, SML is the linear relationship between the expected return of security and its systematic risk, the expected return comparing a risk-free return plus a risk premium.
What is the difference between a high and a low tolerance for risk?
It's a client's willingness to trade higher rates of return on an investment for the risk of losing part or all of their capital investment.
What is Difference between wholesaler and retailer on the basis risk?
what is Difference between wholesaler and retailer on the basis risk?
Difference between traditional life insurance and ULIP policy?
Traditional life insurance gives less return but ULIP may gives high return. Traditional life insurance has no risk factor and ULIP has risk factor.
