Explain the risk-return relationship, Financial Management

Assignment Help:

Explain the risk-return relationship.

The relationship among risk and required rate of return is known as the risk-return relationship.  It is a positive relationship for the reason that the more risk assumed, the higher the necessary rate of return most people will demand.

Risk aversion illustrates the positive risk-return relationship.  It describes why risky junk bonds hold a higher market interest rate than essentially risk-free U.S. Treasury bonds.

 

 


Related Discussions:- Explain the risk-return relationship

Visible venture capital, It is the organized and established firms that con...

It is the organized and established firms that constitute the venture capital industry.

Accounting for financial instruments, The IASB is in the procedure of under...

The IASB is in the procedure of undertaking a comprehensive review of accounting for financial instruments, and has issued a latest financial instruments standard referred to as IF

Proper credit management, If a credit manager experience no bad debt losses...

If a credit manager experience no bad debt losses over the past year. Would this be an indication of proper credit management? Why or why not

Auction technique, Auction Technique Auction is the most common method ...

Auction Technique Auction is the most common method to sell Government Securities. Other methods include tap sales, syndication and book building process. Presently many countr

Compare diversifiable and nondiversifiable risk, Compare diversifiable and ...

Compare diversifiable and nondiversifiable risk. Which do you think is more important to financial managers in business firms? Diversifiable risk is able to be dealt with by of

Define production limits used in practice to raise prices, How are producti...

How are production limits used in practice to raise the prices of the following goods or services: (a) taxi rides, (b) drinks in a restaurant or bar, (c) wheat or

Explain the fixed and floating rates, Question 1 Globalization is a pro...

Question 1 Globalization is a process of international integration that arises due to increasing human connectivity as well as the interchange of products, ideas and other aspe

Explain the term stakeholders, Explain the term StakeHolders The range ...

Explain the term StakeHolders The range of stakeholders may comprise directors/managers, lenders, shareholders, employees suppliers and customers. These groups are probable to

Operating cycle, discuss the applicability of operating cycle in poultry in...

discuss the applicability of operating cycle in poultry industry[consider broilers]

What is percentage of sales method, Q. What is Percentage of Sales Method? ...

Q. What is Percentage of Sales Method? Percentage of Sales Method: - Under this process certain key ratios based on past year's information are established. These ratios is abl

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd