Return on Stock

Return on Stock

Introduction

Investors make investment in stocks, to receive the return however this would not be risk free as the prices of stock may fluctuate frequently in the market. It is therefore important for investors to understand the effect of risk on the return that it would receive they need to analyze the uncertainty associated with investment that will be made in the stock. They need to determine the ways that would be effective to reduce the risk and increase the possibility of maximizing the returns (www.ehow.com). Required rate of return can be explained as a motivating factor that ...