Relationship between risk and return
Write a short note on the relationship between risk and return?
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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.
Traceability: The capability to assign a cost directly to a particular activity or cost object by identifying or observing particular resources used by the activity or cost object.
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