--%>
Assignment Help - homework help

Relationship between risk and return

Write a short note on the relationship between risk and return?

E

Expert

Verified

The relationship between risk and return has significant implications for setting the financial objectives for a business. The owners or shareholders will need a minimum return to induce them to invest at all, however will need an additional return to recompense for taking risks; the higher the risk, the higher the needed return. Managers should be aware of this and should strike the suitable balance among risk and return whenever setting the objectives and pursuing specific courses of action.

   Related Questions in Managerial Accounting

  • Q : Cash shortage/overage An income

    An income statement item that represents the difference between the actual cash amount and an accounting measure of how much cash there should be. The most common example exists in a retail situation where the cash in the cash register is compared to the register tape

    		•
  • Q : Cash budget A plan for the cash coming

    A plan for the cash coming into and going out of a business. Based on the sale forecast,  the timing and amounts of  cash receipts. Based on forecast of resources necessary to  meet the sale forecast, management budgets the cash disbursements. This proc

    		•
  • Q : Fundamentals of Accounting Assignment

    Assignment 1: A adjusted Trial balance table given below: Southwest Business School

    Q : Capital account An account used in a

    An account used in a partnership to record an individual partner's investment in the partnership plus the indi- vidual's share of any undistributed partnership income. In a corpo- ration, the equity sections have two parts: the contributed capital and retained earning

    		•
  • Q : Main working areas of the coach

    Write a short note on the main working areas of the coach maintenance department?

    		•
  • Q : Avoidable interest The amount of

      The amount of interest that an organization would have avoided if it had not made the expenditures for an asset. Avoidable interest is calculated when an entity is self- constructing an asset. The cost of the asset can include material, labor, and overhead plus some interest. The c

    		•
  • Q : Annual report A company's annual report

      A company's annual report is the single most important way for it to convey itself to potential investors. As such, it should be no surprise tha

    		•
  • Q : Define Cost Accounting Cost Accounting

    Cost Accounting: The Cost accounting is an approach to evaluate the overall costs which are related with conducting business. It is generally based on standard accounting practices, cost accounting is one of the tools which managers u

    		•
  • Q : Problem related to budget surplus Refer

    Refer to the below data. A budget surplus occurred in year: A) 2. B) 3. C) 4. D) 6. Provide solution of th

    		•
  • Q : Things which Strengths comprises Write

    Write a brief note on the things which Strengths comprises?

    		•