Explore BrainMass

Explore BrainMass

    Risk and Expected Return

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What is the relationship between risk and expected return, and how do companies employ diversification to reduce risk?

    © BrainMass Inc. brainmass.com March 4, 2021, 6:03 pm ad1c9bdddf
    https://brainmass.com/business/finance/risk-and-expected-return-25814

    Solution Preview

    The higher the risk of the stock or the security the higher the expected return is. However, the higher the loss is as well. That is why people who invest in risky securities acheive the highest return and they are also very risk prone since they are comfortable with risking a potential large amount of money with ...

    Solution Summary

    This solution helps with a problem regarding risk and expected return.

    $2.19

    ADVERTISEMENT