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Learn about the concepts of risk and return in capital budgeting, focusing on the variability of expected returns and the periodic cash receipts and appreciation of assets. Explore the relationship between risk and return of single assets and portfolios.
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Risk and Return in Capital Budgeting
Risk And Return of A Single Asset • Risk refers to the variability of expected returns associated with a given security or asset. • Return- Periodic cash receipts & Appreciation ( Depreciation in the price of the asset