Risk-return assignment help is an important assignment help service of MyAssignmenthelp.com. Risk return spectrum, sometimes called the risk-return trade-off, is an important concept in finance. It refers to the relationship between the amount of return gained on an investment and the amount of risk taken on the same. The spectrum is used by investors to review whether the investment in question was worthwhile or not. The return is directly proportional to the amount of risk undertaken. Higher rates of return are usually expected on high risk investment options while low risk investment options yield lower rates of return.
Risk and return assignment help is the premier assignment help service of MyAssignmenthelp.com which provides risk management assignment help, risk management term paper, risk management research paper, risk management dissertation and risk management thesis.
What are the various levels of this progression?
If you need risk-return assignment help you are surely confused about the spectrum. The risk-return spectrum constitutes a number of overlapping investment options; each with its own share of risk and return. The general progression level constitutes the following options for risk and return assignment help:
- Short-term debt
- Long-term debt
- High-yield debt
It must be remembered here that although the investments differ from each other on the basis of their risk profile and rate of return, they all compete with each other in the capital markets.
Why is the progression necessary?
Risk-return assignment help gives you the help that is necessary to understand the progression of risk and return. The progression of risk and return needs to be understood clearly by the investor. The existence of risk causes a number of expenses. For example, the more risky the investment, the more time and effort is needed to monitor its progress. Risk is something that needs to be compensated for. Higher risk calls for a higher rate of compensation. Lower risk calls for lower rate of return. This progression of risk and return can be visualized by a graph. For help with such a graph get our risk and return assignment help to do well.
The graph of risk-return spectrum
Risk return assignment help gives you complete solutions to your risk management assignment help. One important part of such risk-return assignment help is risk-return spectrum graph. The risk-return spectrum is visualized by plotting expected return on the vertical axis against risk (represented by standard deviation upon that expected return) on the horizontal axis. This line starts at the risk-free rate and rises as the risk rises. The line will tend to be straight and will be straight at equilibrium. For any particular type, the line drawn from the risk-free rate on the vertical axis to the risk-return point for that investment has a slope called the Sharpe Ratio.
The slope was developed by Nobel laureate William F. Sharpe to measure risk-adjusted performance of an investment portfolio. The ratio tells us whether a portfolio’s returns are due to smart investment or excess risk. Although one portfolio or fund can reap higher returns than its peers, these higher rates of return must not come with too much of additional risk. The greater a portfolio’s Sharpe Ratio, the better is its risk-adjusted performance. A negative Sharpe Ratio indicates that asset is risk-free. A risk-return assignment help makes the sharp ration clear. Use this in your risk management term paper, risk management research paper, risk management thesis and risk management dissertation.
Types of investment discussed
Types of investment are also crucial for risk-return assignment help. Risk and return assignment help consists of the following types of disinvestment:
- Short-term loans to good government bodies: Short-term government bonds are normally considered to be risk-free. However, this is only in theory since the government may default. There are also chances that the governments will inflate and monetize their debts. However, from the point of view of the investor, the return is fixed and relatively risk-free. The risk-free rate is commonly approximated by the return paid upon 30 days or their equivalent, but in reality that rate has more to do with the monetary policy of that country’s central bank than the market supply conditions for credit. For more risk and return assignment help, avail our services.
- Long-term loans to good governmental bodies: Mid and long-term loans to governmental enterprises constitute another type of investment portfolio. Long-term loans to such enterprises are made up of three year bonds. The time period is longer and than the previous category of investments and the risk premium also increases with the increase in the maturity of the debts. However, since it is the debt of governmental institutions, the highest end of this range is still lesser than the ranges of the investments to private corporations. For more risk-return assignment help, contact our writers.
- Short-term loans to private corporations: Short-term investments to blue chip corporations with high credit ratings are considered to be relatively risk-free. For more risk-return assignment help, contact our experts.
- Mid and long-term loans to blue chip corporations: The long-term loans to blue chip corporations are higher up the risk-return spectrum because their maturity has increased. They have higher rates of return. However, there is a considerable overlap between the mid-term loans to best rated corporations and short-term loans to perfectly rated corporations. For more risk-return assignment help, log on to MyAssignmenthelp.com.
- Rental property: Rental property can constitute another form of investment. A commercial property which is rented out is comparable in risk and return to a low grade investment. Industrial property has higher risk and return followed by residential property. For more risk-return assignment help, get in touch with our experts.
- High-yield debt: Yet another kind of investment is high-yield debts or bonds. They are also called non-investment grade bonds, speculative grade bonds or junk bonds. These bonds have a higher rate of default but typically pay higher yields than low risk bonds. For more risk-return assignment help, log on to MyAssignmenthelp.com.
- Equity: Equity is the highest form of investment. It is the profits earned by businesses after paying interests and taxes. Equity returns are the most risky. Even equity returns on highly rated corporations are potentially risky. Companies are traditionally divided into three types according to market capitalization:
- Small cap
- Mid cap and
- Large cap.
Small cap stocks are considered to be riskier than large cap stocks. Stocks of consumer goods enterprises tend to be less volatile than stocks of other companies. For more on risk-return assignment help, take our expert assistance.
Risk-return spectrum and investment portfolio
Risk-return spectrum is extremely important in creating and managing the investment portfolio of an individual. An investment portfolio is a financial term denoting a collection of investments such as stocks, bonds and cash equivalents. It is usually held by an individual and prepared by a financial advisor who prepares an investment portfolio keeping in mind the risk tolerance of an individual. The risk-return spectrum helps a financial consultant to locate investments with high return and low risks. However since all investors would want to invest there, the action would drive down the actual rate of return. On the other hand, if an investment had low return with high risk then all the current investors would want to leave the investment which would then increase the actual rate of return. Myassignment gives you the best service in risk-return assignment help.
How MyAssignmenthelp.com can provide risk-return assignment help?
Although there are plenty of risk-return assignment writing services; only MyAssignmenthelp.com gives you genuine help with risk management assignment help. If you do not want risk and return assignment help you might want to try our other services. These include risk management dissertation, risk management research paper, risk management term paper, risk management thesis etc. So how can a student get help from our site? Well, it’s a combination of three easy steps:
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After that, risk management experts will take it from here. We have a number of risk management experts who provide risk and return assignment help with writing, checking and editing help. You can call our 24×7 helpline numbers for any help. If you are still in doubt, why not browse through the testimonials of millions of happy customers who have received risk-return assignment help from our website.