The Risk and Return Relationship
Introduction This article looks at the definitions of risk and return and how they interconnect in the investment arena. It then introduces basic portfolio theory. There are some calculations involved but we hope everyone will be able to follow along. If not, leave a comment and we’ll help you out. What is Risk? Risk and return are interlinked, and so it is not surprising that in most financial textbooks the definition of risk is directly associated to the expected return on
