--%>

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 : 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 : Define Indirect Cost Indirect Cost : A

    Indirect Cost: A cost which can’t be recognized particularly with or traced to a specified cost object in an economically feasible manner.

  • Q : Asset retirement obligation Significant

    Significant costs associated with the disposal of asset. Accounting for asset retirement obligations requires estimating the cost and discounting estimate. The present value added to the asset's depreciable base and a liability is recorded for the obligation. Every year, interest expense is added

  • Q : Influence of managers

    Write down a short note on the influence of manager’s behavior in management accounting information?

  • Q : Ravenna Please see attached. Do tutors

    Please see attached. Do tutors provide assistance as to how they came about their answers?

  • Q : Comparability-Accounting information

    What do you mean by the term Comparability which is accounting information?

  • Q : Main working areas of the coach

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

  • Q : Effect of illegal obligations on cost

    Normal 0 false false

  • 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 Job Costing Job Costing : It is

    Job Costing: It is an order-specific costing method, utilized in situations where each job is distinct and is executed to the customer's specifications. Job costing includes keeping an account of direct and in-direct costs.

    Discover Q & A

    Leading Solution Library
    Avail More Than 1413516 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads
    No hassle, Instant Access
    Start Discovering

    18,76,764

    1950995
    Asked

    3,689

    Active Tutors

    1413516

    Questions
    Answered

    Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

    Submit Assignment

    ©TutorsGlobe All rights reserved 2022-2023.