Il existe clairement une relation entre le risque et le rendement, mais la définition de cette relation n’est pas encore clairement établie

Exposé Comptabilité & finances Finance

Date de publication :

07/05/2008

Langue :

Anglais

Format :

.doc

Nombre de pages :

3 pages

Niveau :

expert

Consulté :

2 fois

Avis client :

non évalué

Validé par :

le comité Oboulo.com

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Sommaire :

Sommaire

We can recognize risk and return relationships by identify and calculate a risk and a return
The second steps to recognize a risk and return relationship is to assess this relationship
Risk and return relationship could have negative consequences on investor's decision
Nevertheless risk and return relationship could be positive for some investor's decisions

Résumé :

It is clear that there is a relationship between risk and return, but we are not yet clear exactly what that relationship is (titre original)

Incertitude about expected returns is one of the criteria which influence the most the investment strategic decision. Therefore the relationship between risk and return is a fundamental financial relationship, because it affects expected rates of return on investment. This risk and return relationship holds for individual investors and business managers. Returns are the financial rewards obtained as result of making an investment. There are different natures of returns; it's depending on the investment. Investments could be bonds, loan, and shares. The definition of risk is more complex than the definition of return. A risk investment is a significant possibility to have a return different from the expected return. There are two risk analyses, one about stock market analysis for share, and one about credit analysis for loan and bond. We are going to focus on the first one which has more risks, and giving some details on the second one.
The target of understanding the relation between risk and return is to be in a better position to achieve your financial goal.
It's a fact that there is a relation between risk and return. But is it a relevant concept which needs to be taken into account during any financial decision making process?
On the one hand, it's necessary to know how recognize a risk and return relationship. On the other hand, it's relevant to notice if this relation is positive or negative for investor's decisions?