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Briefly Define the Risk-Return Trade-Off

question 132

Essay

Briefly define the risk-return trade-off.


Definitions:

Dividend Payout Ratio

Amount of cash paid out to shareholders divided by net income.

Ex-dividend Date

The date on which a stock begins trading without the right to receive the next declared dividend, effectively setting the cut-off for new investors to benefit from the upcoming dividend payment.

Date Of Record

The date set by a corporation on which the shareholders must be registered to be eligible to receive dividend payments.

Stock Split

An action by a company to increase the number of its outstanding shares by issuing more shares to current shareholders.

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