We will discuss about basics of finance

Risk and Return Trade-Off

Return is the reward of undertaking risk in business. Business risk has been defined as the possibility of inadequate profit or even losses due to presence of certain uncertainties like change in consumer preferences, lockouts and strikes, change in government taxation and subsidy policy, etc. Risk is of both type’s internal risk (arising within the business) and external risk (arising because of events taking outside the business). There is no ….