Risk-Return concepts
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You work for an large investment firm and recently wrote a position article on your firm's approach to investing for the small investor, titled "Investing is for the little guy". The article now appears on your company's website. It has, interestingly enough, generated e-mailed responses from potential clients and your firm is asking you to address some of their questions for a Frequently Asked Questions (FAQ) segment that will be posted to the site soon.
Specifically, some of the respondents have compared investing in the stock market as a no win situation and only the institutional investors can win. These respondents would like a response that further clarifies your firm's position regarding risk in light of these type of statements.
In your response, your company has asked that you address these questions building upon the risk-return concepts you identified in the position piece you wrote for the firm.
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Solution Summary
The response addresses the queries posted in 388 Words, APA Reference
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The response addresses the queries posted in 388 Words, APA Reference
Risk-Return concepts
Risk- Return is conceived as the two fundamental determinants of the stock market. Therefore, each and every investor must understand these concepts as they have an affect on the share price, as well as, business firm rating or valuation (Risk and Return Measurement). Yes, the statement given by some of the respondents is true in itself because institutional investors have approach or avail some additional benefits than the small investors i.e. key information related to research report, company's historical trend or past performance, market analysis information, personal contact, etc; but despite of these, ...
Education
- MBA (IP), International Center for Internationa Business
- BBA, University of Rajasthan
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