--%>
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 : Define the term Strategic management

    Briefly define the term Strategic management and also state the reason why it is designed?

    		•
  • Q : Define Full Cost Full Cost : The sum of

    Full Cost: The sum of all costs needed by a cost object comprising the costs of activities executed by other entities in spite of of funding sources.

    		•
  • Q : Define Management Accounting Give a

    Give a brief introduction of the term ‘Management Accounting’. And also write down its objectives?

    		•
  • Q : Define Estimated Cost Estimated Cost :

    Estimated Cost: The procedure of projecting a future outcome in terms of cost, based on information accessible at the time. The estimated costs, instead of actual costs, are at times the basis for credits to work-in-process accounts a

    		•
  • Q : Liability of partners Liability of

    Liability of partners: A) Under contract law: Liability is joint only (collectively); The creditor has only one right of action (except in NSW, where liability is now joint and several).

  • Q : Management accounting and financial

    What does the difference between management accounting and financial accounting suggest?

    		•
  • Q : Explain Activity-Based Costing

    Activity-Based Costing: It is a cost accounting process that measures the cost and performance of process related activities and cost objects. It assigns cost to cost objects, like products or customers, based on their utilization of

    		•
  • Q : Reconstitution of Partnership Meaning

    Meaning of Reconstitution: Any alter in agreement of partnership is termed as reconstitution of partnership firm. In following circumstances a partnership firm might be reconstituted: A) Alter in Profit Sharing Rat

    		•
  • Q : Explain Operating Budgets Operating

    Operating Budgets: It is a financial document which aids a business in making significant decisions regarding its actions. An operating budget does not contain instant impact on the actual state of the business and exhibits only future projections. Bu

    		•
  • Q : Blackout period A defined time period

    A defined time period in accounting for stock options. In the mean while the blackout period person granted the option is not allowed to exercise it. This usually occurs after the granting of the stock options and allows the price of the stock to increase above the exercise price.  <

    		•