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Adelphi University
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FIN 540 Week 1 Discussion
"Risk and Return" Please respond to the following:
· Go to Yahoo! Finance’s Website, located at http://finance.yahoo.com/. Select a publicly traded company in which you are interested, and figure out its symbol (e.g.: Apple-AAPL). Insert the company symbol into the search bar on the left-hand side where it reads “Quote Lookup” and click “Go”. Once on the stocks trading page, look for the vertical blue menu on the left of the page. Scroll down to “COMPANY,” click on the link titled “Key Statistics,” and review basic financial metrics for the chosen company. Discuss two (2) key financial metrics used by investors to evaluate the riskiness of a stock. Select the financial metric that you would be most likely to use and explain your reasoning. Support your selection with one (1) real-world example.
· Examine the concept of risk and return as it applies to financial instruments. Determine the relationship between the two (2) and whether or not the relationship between risk and return always holds true. Provide a rationale for your response.
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