Understanding Risk and Return 10-1 Introduction Risk is a fundamental component of investing. Risk must be understood and managed. In selecting securities‚ it is important to understand and measure market risk. Then securities can be selected by choosing securities with expected returns that exceed required returns. 10-2 Chapter Objectives To grasp the nature of risk and its sources and to relate risk to investment return To grasp the concepts of required return and expected return and to see
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of the question 10 marks (paper 2) 20 minutes on it Explain the law of diminishing returns using average and marginal product curves Definition Law of diminishing returns refer to how the marginal production of a factor of production starts to progressively decrease as the factor is increased‚ in contrast to the increase that would otherwise be normally expected. Triple A Law of diminishing returns – as more and more of a variable factor is added to a fixed factor‚ output will rise initially
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asked for your advice. The three stocks currently held all have b = 1.0‚ and they are perfectly positively correlated with the market. Potential new Stocks A and B both have expected returns of 15%‚ are in equilibrium‚ and are equally correlated with the market‚ with r = 0.75. However‚ Stock A’s standard deviation of returns is 12% versus 8% for Stock B. Which stock should this investor add to his or her portfolio‚ or does the choice not matter? Answer: B‚ Stock B Since she has a portfolio the number
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financial manager for Barnett Corporation‚ wishes to evaluate three prospective investments: X‚ Y‚ and Z. Currently‚ the firm earns 12% on its investments‚ which have a risk index of 6%. The expected return and expected risk of the investments are as follows: |Investment |Expected return |Expected risk | | | |index | |X |14% |7% | |y |12 |8 | |z
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Although Eustacia Vye‚ the protagonist in Return of the Native by Thomas Hardy‚ just wants to get out of the heath‚ her actions alone could be considered immoral. Even before she meets Clym‚ Eustacia decides to fall in love with him. She makes herself infatuated with him because of his social status. Eustacia deceives Clym and her own emotions. She says she will do anything to get off of the heath she hates. Eustacia uses him with the idea that she will get out of her own personal purgatory and
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her wilfulness to be loved‚ and she shows strong will once again with her exchange with Venn in Chapter 10; when he tries to persuade her to give Wildeve up she answers defiantly "[I] will never give him up!" With the talk of Clym ’s return
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“Many Happy (Product) Returns” is an article from a well-known business magazine called Harvard Business Review published by James Stock‚ Thomas Speh‚ and Herbert Shear. The magazine is published by Harvard Business Publishing‚ a wholly owned subsidiary of Harvard University. All of the authors are influential and well-known people in their expertise which is reverse logistics. These have brought a lot of credibility to the content. In the article‚ the authors used several examples of famous companies
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FINANCIAL MANAGEMENT – I RISK AND RETURN ANALYSIS SUBMITTED TO DR. SUSHMA VISNANI BY ABHISHEK DAS AVANIKANT MISHRA DAUD QIDWAI ANKIT TRIPATHI APURBA PRASAD NATH CONTRIBUTION Our project deals with Banking industry. In the project the various banks which are taken into account are Allahabad Bank‚ Canara Bank‚ Punjab National Bank‚ State Bank of India‚ and Union Bank of India. Each of the group members took up each of the bank and did their respective analysis. The banks which were
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The Return of the Native: Style The Return of the Native is Thomas Hardy’s sixth novel and probably his best known. The story focuses on the lives and loves of residents in the fictional county of Wessex‚ England‚ an area which was based on the rural area where Hardy was raised. The narrative style of the novel is different to that of the traditional writing. He uses different narrative mechanisms in making it attractive to its readers. His different approach towards the treatment different components
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Topic Tracking: Fate Fate 1: By chance‚ Captain Vye and the reddleman‚ Diggory Venn‚ walk on the same road. Captain Vye suspects that Thomasin Yeobright is in Venn’s wagon‚ and unmarried. He will later tell his granddaughter‚ Eustacia‚ that Thomasin and Wildeve are not married. Fate 2: It is a combination of fate and scheming that brings Eustacia and Clym together. Eustacia hears from Charley that the Christmas mummers will be performing at the Yeobrights’‚ and she schemes to meet Clym by performing
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