Access over 20 million homework & study documents

R912 Risk.edited.edited

Content type
User Generated
Subject
Business
Type
Homework
Rating
Showing Page:
1/3

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/3

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/3

Sign up to view the full document!

lock_open Sign Up
Unformatted Attachment Preview
Running heading: RISK AND RETURNS 1 Risk and Returns Institutional Affiliation Date 2 RISK AND RETURNS Risk and Returns According to Ross, Stephen Randolph, & Jeffrey, (2016), diversification helps in reducing the risk that an investor may encounter. Diversification involves investing in more than one asset. Ideally, it not possible that all the assets perform badly at the same time. Therefore, again from one investment offset a loss in another. In a large portfolio, the variance terms are diversified away the portfolios have a different estimated return. The portfolio variance measures the dispersion of the returns of an individual portfolio. Also, it analyzes how two assets in a given portfolio move together. On the other hand, the covariance indicates the relationship between two or more assets in a portfolio. In a large portfolio, the risk of the assets in evenly distributed an ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Nice! Really impressed with the quality.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Documents