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Determining risk and return for a stand alone investment asset

Compare and contrast the following methods of determining risk and return for a stand alone investment asset e.g. a corporate equity or a corporate bond

Measures of historical rates of return
Expected rates of return
Measuring the risk of expected rates of return

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Measures of historical rates of return
Measures of historical rate of return are generally used by investors in order to estimate the expected rate of return for an asset class. First of all the historical rate of return is measure on a stand alone investment over the time period it has been held as investment. After this the average historical rate of return is measured for an individual or stand alone investment over a number of time periods. Based on this data a traditional measure of risk for a traditional time series of return is done. And based on this presentation of measures of ...

Solution Summary

The methods of determining risk and return for a stand alone investment asset are determined. The corporate equity or a corporate bond are examined.

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