Risk and Return

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Risk and Return Risk and Return Return refers the amount of total monetary benefits a investors receive from a security. ( P − P −1 ) + D iv t t Ri = P −1 t Where, Pt is price of security in time period t, Pt-1 is price in last time period, Div is dividends. Return Calculation Time May-07 Reliance Ind. Opening Price Closing Price Div. 1752.0 1760.0 10.0 Return= {[(Pt-Pt-1)+Div ]/Pt-1}*100 {[(1760-1752)+10 ]/1752}*100 = 1.04% Risk Variation in the mean rate of return exhibits risk. Volat
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  Risk and Return  Risk and ReturnReturn refers the amount of total monetary benefitsa investors receive from a security. 11 )( −− +−= t t t i  P  Div P  P  R Where, Pt is price of security in time period t, Pt-1 isprice in last time period, Div is dividends.  Return Calculation   Reliance Ind.  Time Opening Price Closing Price Div . May-07 1752.0 1760.0 10.0Return= {[(Pt-Pt-1)+Div ]/Pt-1}*100{[(1760-1752)+10 ]/1752}*100 = 1.04%    Risk  Variation in the mean rate of return exhibitsrisk. Volatility in the stock market indicatesrisk which affects the value of the stocks.
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