M ENT 2A
ANA G E
FI NA N CI A L M
A N D
COST a pter10)
(Ch
s k an d Return
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;
ANA G E
FI NA N CI A L M
A N D
COST a pter10)
(Ch
s k an d Return
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;
