Define Risk and Return and Discuss the Relation Between Them

question 146

Essay

Define risk and return and discuss the relation between them.

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Definitions:

Capital Budget

Capital Budget constitutes the planning and allocation of funds for significant long-term investments or expenditures that a company or organization undertakes to grow or maintain its business operations.

Cash Budget

A financial plan that estimates the income and expenditures of an entity over a specific period, often used to assess its liquidity and funding needs.

Cost Centers

Departments or segments within an organization that do not directly generate revenue but incur costs.

Profit Centers

Divisions or units within an organization that are directly responsible for generating its profit.