--%>

Relationship between risk and return

Write a short note on the relationship between risk and return?

E

Expert

Verified

The relationship between risk and return has significant implications for setting the financial objectives for a business. The owners or shareholders will need a minimum return to induce them to invest at all, however will need an additional return to recompense for taking risks; the higher the risk, the higher the needed return. Managers should be aware of this and should strike the suitable balance among risk and return whenever setting the objectives and pursuing specific courses of action.

   Related Questions in Managerial Accounting

  • Q : Define Partnership deed Partnership

    Partnership deed: Partnership deed is a written agreement including the terms and conditions agreed by all the Partners.

  • Q : What is a Product Product : Any

    Product: Any traceable, discrete, or measurable good or service given to a customer. Frequently goods are termed to as tangible products, and services are termed to as intangible products. A good or service is the product result of a procedure resulta

  • Q : Operation of business

    What are the main reasons that the operation of business environment has become ever more turbulent and competitive?

  • Q : Factors due to changing business

    What are the various factors which occurred due to the changing business landscape?

  • Q : What find out the size of this loss

    What find out the size of this loss? The size of the deadweight loss is based on the elasticity of supply and demand. As the elasticity of demand increases and the elasticity of supply decreases, that means as sup

  • Q : Define Partnership Accounting

    Partnership Accounting: A business can be a firm, a partnership, or a solitary proprietorship. The corporation is incorporated at state level. The sole proprietorship is one person in business. A partnership is two or more than two persons with an agr

  • Q : Reaping the benefits of IT What do you

    What do you mean by the term reaping the benefits of IT? Explain n brief?

  • Q : Describe a join between tables Describe

    Describe a join between tables?

  • Q : Basic accounting principles or concepts

    ACCOUNTING CONCEPTS: Presented below are basic accounting principles or concepts, with which hospital managers should be familiar and that they should understand i

  • Q : Selecting strategic options and

    Write a short note on selecting strategic options and formulating the plans?