Assess potential returns and risks of an investment opportunity by analyzing historical performance, market conditions, financial metrics, and conducting thorough due diligence on the investment's industry and competitors.
Evaluate potential returns and risks by analyzing historical performance, market trends, company financials, and considering factors like economic conditions and industry outlook.
Assessing the potential returns and risks of a specific investment opportunity involves analyzing factors such as historical performance, market trends, financial indicators, industry dynamics, competition, regulatory environment, and the overall economic outlook.
Comparative Analysis of Risk and Return Models
For investments with equity risk, the risk is best measured by looking at the variance of actual returns around the expected return. In the CAPM, exposure to market risk is measured by market beta.
