The document is a presentation on financial management about risk and return. It introduces that return is income from an investment like interest, dividends, or capital gains, while risk is the uncertainty of achieving that return. It describes the different types of risk as systematic, unsystematic, political/regulatory, and financial. A key point is that there is a fundamental tradeoff between risk and expected return, with riskier investments typically offering higher returns.
The document is a presentation on financial management about risk and return. It introduces that return is income from an investment like interest, dividends, or capital gains, while risk is the uncertainty of achieving that return. It describes the different types of risk as systematic, unsystematic, political/regulatory, and financial. A key point is that there is a fundamental tradeoff between risk and expected return, with riskier investments typically offering higher returns.
The document is a presentation on financial management about risk and return. It introduces that return is income from an investment like interest, dividends, or capital gains, while risk is the uncertainty of achieving that return. It describes the different types of risk as systematic, unsystematic, political/regulatory, and financial. A key point is that there is a fundamental tradeoff between risk and expected return, with riskier investments typically offering higher returns.
REG NO:202201101023 PROGRAM: BBA(FINTECH AND DIGITAL BANKING) SEMESTER: 3RD DATE OF SUBMISSION:08-02-2024 SCHOOL OF MANAGEMENT AND COMMERCE INTRODUCTION THE FIRST NORM IS RISK AND RETURN. THE TERM RETURN REFERS TO INCOME FROM A SECURITY AFTER A DEFINED PERIOD EITHER IN THE FORM OF INTEREST, DIVIDEND, OR MARKET APPRECIATION IN SECURITY VALUE. ON THE OTHER HAND, RISK REFERS TO UNCERTAINTY OVER THE FUTURE TO GET THIS RETURN. TYPES SYSTEMATIC RISK – THE OVERALL IMPACT OF THE MARKET. UNSYSTEMATIC RISK – ASSET-SPECIFIC OR COMPANY- SPECIFIC UNCERTAINTY. POLITICAL/REGULATORY RISK – THE IMPACT OF POLITICAL DECISIONS AND CHANGES IN REGULATION. FINANCIAL RISK – THE CAPITAL STRUCTURE OF A COMPANY (DEGREE OF FINANCIAL LEVERAGE OR DEBT BURDEN) RISK AND RETURN ANALYSIS RISK AND RETURN FUNDAMENTAL EQUITY RISK PREMIUM: THE DIFFERENCE IN EQUITY RETURNS ON SAFE INVESTMENTS. IMPLIES THAT STOCK ARE RISKIER THAN BONDS OR BILLS. TRADE OFF ALWAYS ARISES BETWEEN EXPECTED RISK AND EXPECTED RETURN.