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:

Canon

A rule (for example, of proportion). The ancient Greeks considered beauty to be a matter of “correct” proportion and sought a canon of proportion, for the human figure and for buildings. The fifth-century BCE sculptor Polykleitos wrote the Canon, a treatise incorporating his formula for the perfectly proportioned statue. Also, a church official who preaches, teaches, administers sacraments, and tends to pilgrims and the sick.

Proportions

Proportions refer to the relationship in size between different parts of an object, artwork, or architectural design, ensuring harmony and balance in the visual appearance.

Aesthetics

The branch of philosophy that addresses the nature of beauty, especially in art.

Hierarchy Of Scale

A principle in art and architecture where the size of figures is determined by their importance relative to other figures, rather than by their location or physical proximity, commonly used in ancient, medieval, and non-Western art.