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This statement is inaccurate; generally, as investment risk increases, the potential for higher returns also increases. Higher-risk investments, such as stocks or venture capital, can yield greater returns compared to lower-risk options like government bonds or savings accounts. However, it's important to note that with the potential for higher returns comes the possibility of significant losses. Therefore, investors should carefully assess their risk tolerance and investment strategy.
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What game do Kramer n Newman play in 'Seinfeld'?
"RISK...It's a game of world domination"
Why does Romeo decide to return to Verona after he has been banished?
Romeo decides to return to Verona after being banished because he cannot bear the thought of living without Juliet. His love for her drives him to risk his safety, as he believes that being with her, even for a brief moment, is worth the danger. Additionally, he is desperate to ensure Juliet's well-being, especially after hearing of her deep sorrow following their separation. Ultimately, his impulsive love and longing for Juliet outweigh his fear of the consequences.
What is the main difference between Antigone and Ismene in 'Antigone'?
Risk-taker versus intimidated is the main difference between Antigone and Ismene in "Antigone" by Sophocles (495 B.C.E. - 405 B.C.E.).Specifically, Theban Princess Antigone has a daunting personality that leads her to risk her life for a cause. There is nothing quiet about the way she goes about burying her brother Polyneices, a crime punishable by execution. In contrast, her sister Princess Ismene makes every effort to comply with the laws of her daunting uncle King Creon who intimidates her.
What is Romeo willing to risk in order to?
Romeo is willing to risk his life for Juliet.
What type of hardships can be faced in the forest life according to shakespeare?
There is the risk of lions wandering the forests of France, if As You Like It is to be taken as an example.
How do you calculate risk - free return?
Risk free rate of return or risk free return is calculated as the return on government securities of the same maturity.
Basic concept of risk and return?
The higher the risk, the higher the return.
Relationship between risk and return?
risk is pre-stage for return...
What is achohol?
Achohol is a depressant which slows you down. Also, goes directly to your bloodstream and can increase risk of diseases.
What is risk return relationship?
The risk return relationship is a business concept referring to the risk involved in exchange for the amount of return gained on an investment. These two factors are directly proportional to each other, meaning the more return sought, the higher the risk that is undertaken.
Risk free rate is 5 and the market risk premium is 6 What is the expected return for the overall stock market What is the required rate of return on a stock that has a beta of 1.2?
Expected return= risk free rate + Risk premium = 11 rate of return on stock= Riskfree rate + beta x( expected market return- risk free rate)
What does the risk return trade off mean?
additional risk is not taken unless there is an additional compensation or return is expected
How is the potential rate of return on investments related to the level of risk?
Higher risk investments have a higher potential return.
What is risk return ratio?
The risk-return ratio is a financial metric that compares the expected return of an investment to the amount of risk involved in that investment. It helps investors evaluate the potential reward of an investment relative to its risk, allowing for better decision-making. A higher risk-return ratio indicates that an investment may offer a more favorable return for the level of risk taken, while a lower ratio suggests that the potential return may not be worth the risk. Investors often use this ratio to assess and compare different investment opportunities.
What is the risk-free rate if the expected return is 20.4 and beta is 1.6 and expected market return is 15?
expected market return = risk free + beta*(market return - risk free) So by putting in values: 20.4 = rf+ 1.6(15-rf) expected market return = risk free + beta*(market return - risk free) So by putting in values: 20.4 = rf+ 1.6(15-rf) where rf = risk free 20.4 - 24 = rf - 1.6rf -3.6 = -0.6rf rf = 6
What is the required return for a security is15 percent and the risk-free rateis6 percent the risk premium is?
The risk premium for a security is calculated by subtracting the risk-free rate from the required return. In this case, with a required return of 15 percent and a risk-free rate of 6 percent, the risk premium is 15% - 6% = 9%. Thus, the risk premium is 9 percent.
The market risk premium is measured by?
The market risk premium is measured by the market return less risk-free rate. You can calculate the market risk premium as market risk premium is equal to the expected return of the market minus the risk-free rate.
