How is risk and return related to the market as a whole

How is risk and return related to the market as a whole? Give an example.

E

Expert

Verified

A stock has an expected return of 15 percent and a volatility of 20 percent. But how much of such risk and return are associated to the market as a complete? The less which can be attributed to the behaviour of the market, the good will that stock is for diversi?cation purposes.

   Related Questions in Financial Management

  • Q : What are different variables and

    What are distinction variables and parameters of Vega Hedging?

  • Q : Invest through investors the lion's

    What the reason behind invest through investors the lion's share of their funds in domestic securities?Investors invest a lot in their domestic securities since there are significant barriers to investing overseas. The barriers may comprise exce

  • Q : Explain experiment of Vasicek of

    Explain the experiment of Oldrich Vasicek of short-term interest rate.

  • Q : Acc Fin Assume that you inherited some

    Assume that you inherited some money. A friend of yours is working as an unpaid intern at a local brokerage firm, and her boss is selling securities that call for 4 payments of $50 (1 payment at the end of each of the next 4 years) plus an extra payment of $1,000 at the end of Year 4. Your friend sa

  • Q : Financial management From books of

    From books of Aggarwal Bors, following information has been extracted: Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax

  • Q : How can we use real probabilities for

    How can we use real probabilities for pricing derivatives?

  • Q : Complete and incomplete market in term

    What is complete market and incomplete market in term of probabilistic?

  • Q : Explain differences between foreign

    Explain the differences between foreign bonds & Eurobonds. Also describe why Eurobonds make up the lions share of the international bond market.The two segments of the international bond market are following:  foreign bonds & Eurobo

  • Q : Tax considerations effect on the cost

    Explain the tax considerations effect on the cost of equity and the cost of debt?

  • Q : Compute the cross-rates Calculate a

    Calculate a cross-rate matrix for the French franc, Japanese yen, German mark, and the British pound. Use the most current European term quotes to compute the cross-rates so that the triangular matrix result is alike to the portion above the diagonal .The cross-rate formul

©TutorsGlobe All rights reserved 2022-2023.