January 2018
Beginner
976 pages
142h 14m
English
LG1
Most important business decisions entail two key financial considerations: risk and return. Each financial decision presents certain risk and return characteristics, and the combination of these characteristics can increase or decrease a firm’s share price. Analysts use different methods to quantify risk, depending on whether they are looking at a single asset or a portfolio—a collection or group of assets. We will look at both, beginning with the risk of a single asset. First, though, it is important to introduce some fundamental ideas about risk, return, and risk preferences.
In the most basic sense, risk is a measure of the uncertainty surrounding the return that an investment will earn. ...
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