By the end of this unit, you will be able to:
- Critically evaluate the concepts of financial risk and return and appraise how the two relate to each other.
- Distinguish between classes of assets, in terms of their risk element and the associated return, and evaluate alternative investment decisions in distinct environments.
- Recognise the fundamental concepts of modern portfolio theory and identify distinctive frameworks to measure investment performance.
- Demonstrate knowledge of managing risk in investment decision, critically evaluating them against their expected returns.
- Assess the risk-return trade-off in different investment decisions and make effective financial decisions as potential investor.
- Distinguish and categorise different types of investment decisions in asset classes based on their implicit risk-return trade-off.