You deposited $1,000 in a savings account that pays 8 percent interest, compounded quarterly, planning to 1. use it finish your last Eighteen months later, you decide to go to the Rocky Mountains to to year in college. become a ski continue in school, instructor rather than so you close out How much money will you your account. receive? a. $1,171 b $1,126 $1,082 d. $1,163 c. e. $1,008

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Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.