"still curious why you think risk/return is related btw since its been disproved using beta as the measure of risk"
Why are you asking me basic questions ?
If you are in cash, you get a 'safe' return with no risk.
If you are in short-term treasuries you get a low return with minimal risk.
If you invest in bonds you get a higher return but with greater volatility, interest rate risk ans sometimes default risk.
If you invest in equities, your returns are more volatile and riskier, therefore you demand a higher return premium, ie your expected return will be higher.
If you invest in an oil exploration company, you have a big chance of going bust and a small chance of making a killing. You demand an even higher expected return.
You wouldn't invest in an oil exploration company if your expected return was 5%, would you. You would choose a term deposit.
.
- Forums
- ASX - General
- clarkkent
clarkkent, page-107
Featured News
Featured News
The Watchlist
3DA
AMAERO LTD
Hank Holland, Chairman and CEO
Hank Holland
Chairman and CEO
Previous Video
Next Video
SPONSORED BY The Market Online