Risk & Return: BY: S.S. R. Krishna, Faculty (Finance) (Icfai)
Risk & Return: BY: S.S. R. Krishna, Faculty (Finance) (Icfai)
Risk & Return: BY: S.S. R. Krishna, Faculty (Finance) (Icfai)
BY:
S.S. R. KRISHNA,
FACULTY (FINANCE) ( ICFAI )
RISK
3) standard deviation
4) variance
5) BETA coefficient.
Portfolio and risks:
1) PORTFOLIO : an investment portfolio stands
for diversified investments to mean investments
in different securities of different sectors.
Diversifiable risks: these risks affect only a
particular firm/sector and are even known as
unsystematic risks. The risk arises mainly due
to factors that are company specific.
ex: company strikes, product failure etc
Sol: the risk can be eliminate by investing other
type of securities
BETA:
It is an indicator, which indicates
how returns on particular security would
change due to change in the market index