Important Points for IC 99 - Asset Management Exam
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Standard deviation : This is the square root of variances. This has been also discussed earlier.
Beta reflects volatility of return on an investment relative to market swings. This has been also discussed earlier.
Total rate of return on investment for a period (say 1 year) is determined in the following way : Total Return = [Annual income + (price at end - Price at Beginning)] / Price at Beginning.
Risk on investment refers to chance of loss of expected return on investment.
Systematic risks arise from those forces that are uncontrollable, external and broad in their effect.
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