Examlex
Calculate the arithmetic return of an investment with five year returns of 10%, (15%) , 12%, 8% and (5%) .
Risk
The potential for financial loss or gain in an investment due to various factors including market volatility.
Return
The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.
Correlation Coefficient
A statistical measure that calculates the strength and direction of a linear relationship between two variables, ranging from -1 (perfect negative correlation) to +1 (perfect positive correlation).
Expected Return
The expected return is the anticipated profit or loss from an investment over a specified period, based on historical or projected rates.
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