risk and return analysis of a company

The return from a security sometimes varies because of certain factors affecting only the company issuing such security. It is important to analyze and attempt to quantify the relationship between risk and return. It is clear from an example in which a person is running a particular business that provides him return of $200,000 per month. The above can be checked with the capital weightage formulas for the minimum variance (risk).Substituting Create a 1,050-word report, and include the following: Explain the relationship between risk and return Identify an example of risk and return.

When variability of returns occurs because of such firm-specific factors, it is known as unsystematic risk.

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