The reason why managers make out that trade-off exists between returns and risk and even the reason why this trade-off exits. Introduction: Risk refers to the movement or fluctuation in the value of an investment in the business. The movement can be positive or negative. A positive fluctuation in the price benefits the investor. The investor will lose money if the price movement in negative. Return is a loss or gain incurred on the investment made by the investors. It is expressed in terms of percentage.

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Answer 1

Question

Chapter 1.2, Problem 1.6RQ

Summary Introduction

To discuss: The reason why managers make out that trade-off exists between returns and risk and even the reason why this trade-off exits.

Introduction:

Risk refers to the movement or fluctuation in the value of an investment in the business. The movement can be positive or negative. A positive fluctuation in the price benefits the investor. The investor will lose money if the price movement in negative.

Return is a loss or gain incurred on the investment made by the investors. It is expressed in terms of percentage.

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Students have asked these similar questions

What is the relationship between financial decision making and risk & return? Would all financial managers view risk-return trade-offs similarly?

How does the risk return trade-off relate to the financial manager's main goal?

What is the main goal of the financial manager? How does the risk return trade-off relate to the financial manager's main goal?

Answer 2

Question

Chapter 1.2, Problem 1.6RQ

Summary Introduction

To discuss: The reason why managers make out that trade-off exists between returns and risk and even the reason why this trade-off exits.

Introduction:

Risk refers to the movement or fluctuation in the value of an investment in the business. The movement can be positive or negative. A positive fluctuation in the price benefits the investor. The investor will lose money if the price movement in negative.

Return is a loss or gain incurred on the investment made by the investors. It is expressed in terms of percentage.

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Answer 3

Question

Chapter 1.2, Problem 1.6RQ

Summary Introduction

To discuss: The reason why managers make out that trade-off exists between returns and risk and even the reason why this trade-off exits.

Introduction:

Risk refers to the movement or fluctuation in the value of an investment in the business. The movement can be positive or negative. A positive fluctuation in the price benefits the investor. The investor will lose money if the price movement in negative.

Return is a loss or gain incurred on the investment made by the investors. It is expressed in terms of percentage.

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Answer 4

Question

Chapter 1.2, Problem 1.6RQ

Summary Introduction

To discuss: The reason why managers make out that trade-off exists between returns and risk and even the reason why this trade-off exits.

Introduction:

Risk refers to the movement or fluctuation in the value of an investment in the business. The movement can be positive or negative. A positive fluctuation in the price benefits the investor. The investor will lose money if the price movement in negative.

Return is a loss or gain incurred on the investment made by the investors. It is expressed in terms of percentage.

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Answer 5

Chapter 1.2, Problem 1.6RQ

Summary Introduction

To discuss: The reason why managers make out that trade-off exists between returns and risk and even the reason why this trade-off exits.

Introduction:

Risk refers to the movement or fluctuation in the value of an investment in the business. The movement can be positive or negative. A positive fluctuation in the price benefits the investor. The investor will lose money if the price movement in negative.

Return is a loss or gain incurred on the investment made by the investors. It is expressed in terms of percentage.

Answer 6

Chapter 1.2, Problem 1.6RQ

Summary Introduction

To discuss: The reason why managers make out that trade-off exists between returns and risk and even the reason why this trade-off exits.

Introduction:

Risk refers to the movement or fluctuation in the value of an investment in the business. The movement can be positive or negative. A positive fluctuation in the price benefits the investor. The investor will lose money if the price movement in negative.

Return is a loss or gain incurred on the investment made by the investors. It is expressed in terms of percentage.

Answer 7

Chapter 1.2, Problem 1.6RQ

Summary Introduction

To discuss: The reason why managers make out that trade-off exists between returns and risk and even the reason why this trade-off exits.

Introduction:

Risk refers to the movement or fluctuation in the value of an investment in the business. The movement can be positive or negative. A positive fluctuation in the price benefits the investor. The investor will lose money if the price movement in negative.

Return is a loss or gain incurred on the investment made by the investors. It is expressed in terms of percentage.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 1.1 - What is the goal of the firm and, therefore, of...Ch. 1.1 - For what three main reasons is profit maximization...Ch. 1.1 - What is risk? Why must financial managers consider...Ch. 1.1 - Is maximizing shareholder wealth inconsistent with...Ch. 1.2 - What are the main types of decisions that...Ch. 1.2 - Prob. 1.6RQ Ch. 1.2 - Prob. 1.7RQ Ch. 1.2 - What are the major differences between accounting...Ch. 1.2 - Prob. 1.9RQ Ch. 1.3 - Prob. 1.10RQ

Solution Summary: The author explains that financial managers make out that trade-off exists between returns and risk in a business. Risk refers to the movement or fluctuation in the value of an investment.

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