February 11, 2025

Risk and Return

Leartex > Blog > Risk and Return

December 13, 2022
Leartex
Risk and Return

3 Types of Risk preference Investor

Risk preference is the attitude of taking financial risks by an investor. An individual investor, while making an investment decision, would take risks according to his or her risk preferences....

November 21, 2022
Leartex
Risk and Return

CML vs SML | Key Difference |

CML vs SML – Key Difference. SML and CML are two very crucial concepts in finance. SML stands for Security Market Line, while CML’s full form is Capital Market Line....

November 21, 2022
Leartex
Risk and Return

What is CML / Capital Market Line?

The capital market line (CML) represents portfolios that optimally combine risk and return. It is a theoretical concept that represents all the portfolios that optimally combine the risk-free rate of...

November 11, 2022
Leartex
Risk and Return

Difference between Business Risk and Financial Risk

Business Risk VS Financial Risk. Financial risk refers to a company’s ability to manage its debt and financial leverage, while business risk refers to the company’s ability to generate...

November 11, 2022
Leartex
Risk and Return

What is Unsystematic Risk?

Unsystematic risk, also known as diversifiable risk or non-systematic risk, is the danger that relates to a particular security or a portfolio of securities. What is Unsystematic Risk? Unsystematic...

November 11, 2022
Leartex
Risk and Return

What is Systematic Risk? Types, Formula, Example

Systematic risk refers to the risk inherent to the entire market or market segment. Systematic risk, also known as “undiversifiable risk,” “volatility” or “market risk,” affects the overall market, not...

November 10, 2022
Leartex
Risk and Return

Systematic risk VS Unsystematic risk | Key Difference |

Systematic risk VS Unsystematic risk. Before knowing the key difference between systematic and unsystematic risk we must have some initial knowledge about these terms. What is Systematic Risk? Systematic...

September 25, 2022
Leartex
Risk and Return

What is Return in Finance?

Return can be defined as the outcome of investments. It is the excess amount of cash inflows over investments. It can be defined as the difference between the investment...

September 25, 2022
Leartex
Risk and Return

What is Risk or Financial Risk?

Risk analysis of investment is one of the most complex, controversial and slippery areas in finance. Business decisions are generally made under conditions of uncertainty rather than under conditions...

September 24, 2022
Leartex
Risk and Return

Sources or Types of Systematic Risk

In finance, there are many sources or types of Systematic Risk. Systematic risk refers to that portion of the total variability in return on investment caused by factors affecting...

Cart