Equity Risk and Expected Returns

To understand how risk is viewed in corporate finance, we will present the analysis in three steps. First, we will define risk in terms of the distribution of actual returns around an expected return. Second, we will differentiate between risk that is specific to an investment or a few investments and risk that affects a much wider cross section of investments. We will argue that when the marginal investor is well diversified, it is only the latter risk, called market risk that will be rewarded. Third, we will look at alternative models for measuring this market risk and the expected returns that go with this risk.

Retirement Planning For The Golden Years

Retirement Planning For The Golden Years

If mutual funds seem boring to you, there are other higher risk investment opportunities in the form of stocks. I seriously recommend studying the market carefully and completely before making the leap into stock trading but this can be quite the short-term quick profit rush that you are looking for if you am willing to risk your retirement investment for the sake of increasing your net worth. If you do choose to invest in the stock market please take the time to learn the proper procedures, the risks, and the process before diving in. If you have a financial planner and you definitely should then he or she may prove to be an exceptional resource when it comes to the practice of 'playing' the stock market.

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