Principles of Managerial Finance, Student Value Edition Plus NEW MyLab Finance with Pearson eText -- Access Card Package (14th Edition)
Principles of Managerial Finance, Student Value Edition Plus NEW MyLab Finance with Pearson eText -- Access Card Package (14th Edition)
14th Edition
ISBN: 9780133740912
Author: Lawrence J. Gitman, Chad J. Zutter
Publisher: PEARSON
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Chapter 1.2, Problem 1.9RQ
Summary Introduction

To discuss: The meaning of risk.

Introduction:

Risk refers to the movement or fluctuation in the value of an investment in the business. The movement can be positive or negative. A positive fluctuation in the price benefits the investor. When the price flow is negative, the investor will lose money.

Summary Introduction

To discuss: The reason for considering both the risk and return on evaluating a decision action.

Introduction:

Return is a loss or gain incurred on the investment made by the investors. It is expressed in terms of percentage.

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