Risk and return analysis pdf

Posted on Monday, June 7, 2021 8:52:15 AM Posted by Amalio R. - 07.06.2021 and pdf, edition pdf 2 Comments

risk and return analysis pdf

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Risk and Returns: Concept of Risk and Returns

Background: Profits in the biopharmaceutical industry have been scrutinized in social debate. However, drawing conclusions based on industry profitability only is inappropriate as such an analysis does not account for risks faced by investors. This study aims to measure risks and returns in the biopharmaceutical industry and investigates whether risk-adjusted return on investment in the biopharmaceutical industry is higher than that in other industries. Methods: To enable appropriate comparison, we identified six benchmark industries with characteristics that match those of the biopharmaceutical industry: automotive manufacturing, commercial aircraft manufacturing, consumer electronics, packaged food manufacturing, telecom, and oil and gas. Data on return measures i. The Sharpe ratio was calculated as a measure of risk-adjusted return on investment and compared between industries. Results: Net profit margins varied between

The higher the risk undertaken, the more ample the expected return — and conversely, the lower the risk, the more modest the expected return. Risk refers to the variability of possible returns associated with a given investment. Risk, along with the return, is a major consideration in capital budgeting decisions. The firm must compare the expected return from a given investment with the risk associated with it. Higher levels of return are required to compensate for increased levels of risk.

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Fakultas Perikanan dan Ilmu Kelautan

After investing money in a project a firm wants to get some outcomes from the project. The outcomes or the benefits that the investment generates are called returns. Wealth maximization approach is based on the concept of future value of expected cash flows from a prospective project. So cash flows are nothing but the earnings generated by the project that we refer to as returns. Since fixture is uncertain, so returns are associated with some degree of uncertainty. In other words there will be some variability in generating cash flows, which we call as risk.

This chapter explores the relationship between risk and return inherent in Although our analysis has laid out the solution clearly, no one but Harold can.

Risk-Return Analysis of the Biopharmaceutical Industry as Compared to Other Industries

Subramanyam and Dr. Krishnaprabha1 and Mr. Narayan Gaonkar and Dr.

Portfolio Risk and Return: Part I


  • Nepal Bank Patrika, Baishakh Masanta,(). • Panthi Ramu, "Analysis of Risk and Return of common stock investment of commercial banks of Nepal" An. Francis P. - 12.06.2021 at 17:43
  • Risk and return concepts are basic to the understanding of the valuation of assets or securities. Lucy V. - 14.06.2021 at 19:35