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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
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Relationship between risk and return?
risk is pre-stage for return...
The difference between returns on shares and government bonds is known as?
The difference between returns on shares and government bonds is known as the equity risk premium. This premium represents the additional return investors expect to earn from investing in stocks over safer government bonds, compensating them for the higher risk associated with equities. It is a key concept in finance, reflecting the trade-off between risk and return in investment choices.
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.
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.
What is the difference between return on investment and return on assets?
They are one and the same and they are used interchangeably.
Relationship between risk and return?
risk is pre-stage for return...
The difference between returns on shares and government bonds is known as?
The difference between returns on shares and government bonds is known as the equity risk premium. This premium represents the additional return investors expect to earn from investing in stocks over safer government bonds, compensating them for the higher risk associated with equities. It is a key concept in finance, reflecting the trade-off between risk and return in investment choices.
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.
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.
What is Difference between wholesaler and retailer on the basis risk?
what is Difference between wholesaler and retailer on the basis risk?
How do you compute the risk-adjusted return on an investment?
The risk-adjusted return is a measure of how much risk a fund or portfolio takes on to earn its returns, usually expressed as a number or a rating. This is often represented by the Sharpe Ratio. The more return per unit of risk, the better. The Sharpe Ratio is calculated as the difference between the mean portfolio return and the risk free rate (numerator) divided by the standard deviation of portfolio returns (denominator).
What is the difference between the sales return and purchase return?
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What is the difference between an efficient portfolio and the optimal portfolio?
The difference is that an efficient portfolio is one that offers the lowest risk for the greatest return or vice versa. An optimal portfolio is one that is preferred by investors because it is tailored specifically to the individual's risk preferences.
What is difference between constraint an risk?
A constraint is a limitation that is visible and present. The difference between a constraint and risk is that a risk is problem that is not yet seen, or a potential problem.
What are the difference between political risk and country risk?
they are the same
What is the difference between transaction risk and economic risk?
Transaction is bank risk
What is the difference between the required rate of return and the expected rate of return in investment analysis?
The required rate of return is the minimum return an investor needs to justify the risk of an investment, while the expected rate of return is the return that an investor anticipates receiving based on their analysis of the investment's potential performance.
