Unit 6 Risk and Return 2016.pptx

M ENT 2A
ANA G E
FI NA N CI A L M
A N D
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UNIT 6 : Ri

, RESOURCES



• Textbook:
• Chapter 10
• Study Guide
• Unit 6: Risk and Return
• Calculator

, LEARNING OUTCOME




Explain the concepts of risk and uncertainty by
calculating, applying and solving issues of simple
probability as well as issues of correlation

, ASSESSMENT CRITERIA



1. The return on an investment is accurately computed;
2. The historical return on various types of investments are
understood;
3. The historical risk on various types of investments are
understood;
4. Expected returns and standard deviations as a measure of risk for
both individual assets and portfolios are accurately computed;
5. Diversification is correctly defined and the impact thereof
incorporating correlation accurately explained;
6. Systematic or non-diversifiable risk and unsystematic or
diversifiable risk are accurately distinguished;
7. The security market line and efficient market hypothesis are
accurately described;