Chat with us, powered by LiveChat DOES THIS CHANGE THE REQUIRED RETURN YOU NEED IN ORDER TO INVEST IN THE DIFFERENT OPPORTUNITIES? | Writedemy

DOES THIS CHANGE THE REQUIRED RETURN YOU NEED IN ORDER TO INVEST IN THE DIFFERENT OPPORTUNITIES?

DOES THIS CHANGE THE REQUIRED RETURN YOU NEED IN ORDER TO INVEST IN THE DIFFERENT OPPORTUNITIES?

Risk, Return and Diversification

Imagine you have the option to invest in three different opportunities: A, B and C. Let’s also say that you have analyzed the risks and you believe you can classify them as low-risk, medium-risk and high-risk, respectively. Which of these three opportunities would you need to provide the greatest return in order to invest in it?

Now let’s say the returns of opportunities A and B are highly correlated with the market as a whole but those of opportunity C have a very low correlation with the overall market. Would this information potentially change the required return you imposed on the opportunities in order to invest in them if so, why?

Now imagine that another investor views the risks to be exactly the opposite of your view (that is, she views opportunity C to be the least risky, followed by B and then A). Assume your view of the risks is the same as described earlier. Does this change the required return you need in order to invest in the different opportunities?

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.

Do you need an answer to this or any other questions?

About Writedemy

We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.

How It Works

To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

Are there Discounts?

All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.

Hire a tutor today CLICK HERE to make your first order