How financial returns are related to risk


1. Discuss how financial returns are related to risk.

2. Describe the concept of beta and how it is used.

3. Imagine your manufacturing corporation has just won a patent lawsuit. After attorney and other fees, your corporation will have about $1 million. Explain how you plan to invest the money in order to diversify the risk and receive a good return. Support your decisions with concepts learned in this course.

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Finance Basics: How financial returns are related to risk
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