Risk and Return in Capital Markets

4 important questions on Risk and Return in Capital Markets

How do you calculate a annual realized return given 4 realized quarterly returns?

1+Rannual = (1+R1)(1+R2)(1+R3)(1+R4)

What is independent risk?

Risk that is independent, like the robbery of a house

What is unsystematic risk in stock portfolio's?

The risk of fluctuations due to company or industry specific news
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Is there a relationship between volatility and average returns for induvidual securities?

No

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