Risk and Return
تعداد صفحه : 20Risk and Return The art of investing is defined by risk and return. An investor is willing to assume a certain amount of risk as a trade-off to getting paid an expected return. It is quite important for any person, prior to jumping into the stock market, to understand the different types of risk and how to measure them. As we will see, some types can be circumvented through diversification, while others cannot. Be sure you are getting paid for the added risk you take! When an investor buys a security (stock, bond, mutual fund, artwork, etc) they have a certain expected return. Some investors may quantify this number as a percentage, while others just hope for some sort of positive return. Expected return is mathematically defined as income + capital appreciation….
