--%>
Assignment Help - homework help

Describe the risk-return relationship

Describe the risk-return relationship.
The relationship among risk and required rate of return is term as the risk–return relationship.  This is a positive relationship since the more risk assumed, the higher the required rate of return most people will demand.
Risk aversion describes the positive risk–return relationship.  It describes why risky junk bonds carry a higher market interest rate than in essence risk-free U.S. Treasury bonds.

   Related Questions in Finance Basics

  • Q : What is Department Department: The

    Department: The governmental organization, generally belonging to the third level of the state organizational hierarchy as stated in the Uniform Codes Manual.

    		•
  • Q : Describe working capital Describe

    Describe working capital? Working capital contains the current assets of the firm.

    		•
  • Q : Describe Schedule 10 Schedule 10 :

    Schedule 10: (Supplementary Schedule of Appropriations): The Department of Finance control document listing all the appropriations and allocations of funds accessible for expenditure throughout the past, present, and budget years. Such documents are s

    		•
  • Q : Describe Section 28.50 Section 28.50 :

    Section 28.50: It is a Control Section of the Budget Act which authorizes the Department of Finance to increase or reduce the reimbursement line of an appropriation schedule for the reimbursements received from agencies of other state. It too contains

    		•
  • Q : Graphically combined transactions and

    Normal 0 false false

  • Q : What are Authorized Positions

    Authorized Positions: As replicated in the Governor’s Budget (Expenditures by Category and modifications in Authorized Positions), corresponds with the “Total, Authorized Positions” illustrated in the Wages and Salaries.

    		•
  • Q : Describe security Normal 0 false false

    Normal 0 false false

    		•
  • Q : Time Value of Money Problems on a Texas

    TVM Appendix B: Using the TI-83/84  Time Value of Money Problems on a Texas Instruments TI-831 Before you start:  To calculate problems on a TI-83, you have to go into the applications menu, the blue  “APPS” key on the calculator. Several

    		•
  • Q : Define Subcommittee Subcommittee : The

    Subcommittee: The smaller groupings into which the Senate or Assembly committees are frequently divided. For illustration, the fiscal committees which hear the Budget Bill are classified into subcommittees usually by departments or subject area (examp

    		•
  • Q : Define Reversion Reversion : The return

    Reversion: The return of the unused part of an appropriation to the fund from which the appropriation was made, usually two years (that is, four years for federal funds) after the last day of an appropriation’s accessibility period. The Budget A

    		•