Risk and Return

Risk and Return              

 ““To win, you have to risk loss."”

-- Jean-Claude Killy, Olympic Skiing Champion "

In market there is always exist a trade-off between risk and return for securities, i.e. the higher the risk of a security, the higher the expected return will be.

 In Risk and Return, we will cover basic concepts

1)        Defining Risk and Return 

2)        Using Probability Distribution to Measure Risk 

a)         Probability Distribution          b)       Expected Return

c)         Standard Deviation                d)       Coefficient of Variation

3)        Attitudes toward Risk                               

4)        Risk and Return in a Portfolio Context

5)        The Capital Asset Pricing Model

6)        Diversification

7)        Efficient Financial Markets