In this article we will discuss about risk and return on investment. Risk and Required Return: The expected rate of return of an investment reflects the return an investor anticipates receiving from an investment. The required rate of return reflects the return an investor demands as compensation for postponing consumption and assuming risk. The required rate of return of an [...]
Learn how to calculate risk and return on portfolio of securities in a firm. Return on Portfolio: The expected return from a portfolio of two or more securities is equal to the weighted average of the expected returns from the individual securities. Σ(RP) = WA(RA) + WB(RB) Where, Σ(Rp) = Expected return from a portfolio of two securities WA = [...]
In this article we will discuss about:- 1. Meaning of VBM 2. Methods of VBM 3. Benefits and Limitations. Meaning of VBM: VBM is the management approach that ensures corporations are run consistently on value, normally maximizing shareholders value. VBM aims to provide consistency of the firm's strategy, mission, governance, culture, communication, organization of the corporation, decision processes, reward processes [...]