Risk and return:
Basic concept: a entails more risk-taking is expected higher returns.
Many investors to note that accepting a higher risk to get higher returns is mandatory. In this article we explain the relationship between the two major models used to explain them. Then explain how these tools can be used by investors to assess the assets, such as bonds fall.
Why should companies with higher incomes have a higher risk? Of course, an investor in exchange for accepting higher risks require higher expected returns. And we actually investigated this relationship with long-term historical returns of stocks, bonds and assets with less risk, as shown in the first graph, we can see
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