Assignment:
Risk and Return
Activity Context
This discussion helps you develop the skills to master the following course competencies:
o Integrate financial analyses into general business management planning and decision making.
Activity Instruction
Compare and contrast the concepts of risk and return. Also discuss the importance of portfolio diversification and its relationship to risk and return.
Support your post as appropriate with the theories presented in this week's required reading.
Readings
Use your Corporate Finance: Core Principles and Applications textbook to read the following:
o "Risk and Return: Lessons From Market History."
o "Return and Risk: The Capital Asset Pricing Model (CAPM)." Pay particular attention to page 343, "Beta, Beta, Who's Got the Beta?" This information will be used Unit 4 Discussion 2.
o "Risk, Cost of Capital, and Capital Valuation."
Ross, S. A., Westerfield, R. W., Jaffe, J. F., & Jordan, B. D. (2018). Corporate finance: Core principles and applications (5th ed.). New York, NY: McGrawHill.