What Is the Difference Between Risk and Return, and How

question 82

Essay

What is the difference between risk and return, and how do financial managers try to balance the two, in order to maximize shareholders' return?

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Definitions:

Credit Card

A payment card issued to users as a method of payment allowing the cardholder to pay for goods and services on the basis of the holder's promise to pay for them.

Notes Receivable

Claims or obligations due to a business from others, payable within a specified time period, often with interest.

Accounts Receivable

Money owed to a business by customers for products or services provided on credit.

Trade Receivables

Amounts owed to a business by its customers arising from the sale of goods or services on credit.