Based on daily time series from 21 international market indices for more than 13 years (January 2000 to February 2013), the empirical findings support the arguments of risk return tradeoff, volatility feedback and statistical balance. Generally, the higher the potential return of an investment, the higher the risk. I�BR�d��E�l36�T�%祤$���_O�� ���#!�ꖋ0zz�����-{��-+��γ�=emUg���!��������Yn���-��Dz���̪�X�y^fo�;�ܔY���5���:����� n5y(���h��`�������=浴�]v*����k�k���������߳�j��IP�����6M_y��ȷÑJT��fz�p��O��W�|���������o����է�ؔF(E)��o���*����X��p����r��Sw*;z唷]]����UM��Fv����cE�U��]��e��c�����m�e���q�z�O����#�]g�n~�t�*胣K�&/�S.��Et�i��i�|@\�f.���Y ����`o&Ϗ�ϟv��Q��*5���f6��wH�V��Gc89����PWN[Ñ�*���K�X7u��9����a:�������,�qs�NF��v]�x�!б��w���7W�Y�]��|��$P�u+��yQ��oU$ endobj 1925 The relationship between risk and return can be observed by examining the returns actually earned by investors in various types of securities over long periods of time. 0000002126 00000 n Data and Sample The primary data for this investigation were drawn from two sources. 15 0 obj 0 endobj true /ColorSpace 7 0 R /SMask 22 0 R /BitsPerComponent 8 /Filter /FlateDecode E�6��S��2����)2�12� ��"�įl���+�ɘ�&�Y��4���Pޚ%ᣌ�\�%�g�|e�TI� ��(����L 0�_��&�l�2E�� ��9�r��9h� x�g��Ib�טi���f��S�b1+��M�xL����0��o�E%Ym�h�����Y��h����~S�=�z�U�&�ϞA��Y�l�/� �$Z����U �m@��O� � �ޜ��l^���'���ls�k.+�7���oʿ�9�����V;�?�#I3eE妧�KD����d�����9i���,�����UQ� ��h��6'~�khu_ }�9P�I�o= C#$n?z}�[1 endobj The risk-return relationship will now be measured in terms of the portfolio’s expected return and the portfolio’s standard deviation. 21 0 obj endobj Use the graphic on the slide to discuss the risk/return relationship with students. 4�.0,` �3p� ��H�.Hi@�A>� <<42D7EAF72124A941B184329B268E36C4>]/Prev 668412/XRefStm 1441>> >> P[ E&:|�l�q�R l�0dԘrTB�Y@�fƢ��2��i�EV~8�:=�Pg#�;�N���]` �2���(X���C�[��UB�+�E��"�N��f����拆Ŷs5b���d� endobj << /Length 21 0 R /Type /XObject /Subtype /Image /Width 1279 /Height 341 /ColorSpace The entire scenario of security analysis is built on two concepts of security: Return and risk. 1 /BBox [60 528 503 696] /Resources 12 0 R /Group << /S /Transparency /CS However the empirical evidence based on index return series has been mixed in the context of GARCH-M models. Thus, using a different measure of risk than variance seems to be necessary, when it comes to specify and test theoretical models of the risk-return relationship. x�� 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While a substantial literature focuses on the risk-return relationship for stocks, much less attention has been paid to housing. 0000036628 00000 n In risk-return analysis, there’s a model that illustrates the relationship between risk & return known as capital asset pricing model [CAPM]. endstream 27 0 obj << /Length 23 0 R /Type /XObject /Subtype /Image /Width 1839 /Height 698 /ColorSpace A1�v�jp ԁz�N�6p\W� p�G@ endobj The idea is that some investments will do well at times when others are not. 2. /DeviceGray /Interpolate true /BitsPerComponent 8 /Filter /FlateDecode >> Increased potential returns on investment usually go hand-in-hand with increased risk. Many … << /Length 11 0 R /Filter /FlateDecode /Type /XObject /Subtype /Form /FormType >> 22 0 obj Part III highlights the significance of risk–return analysis as a prerequisite for investment decisions, while Part IV examines the selection and performance appraisals of portfolios against the backdrop of the risk–return relationship. ON THE RISK RETURN RELATIONSHIP Jianxin Wang. 26 0 obj 5729 �����-�C�t)�K�ݥ��[��k���A���d��$�L�}*�⋫�IA��-��z���R�PVw�"(>�xA(�E��;�d&Yj�e�|����o����B����%�6sɨ���c��:��!�Q,�V=���~B+���[?�O0W'�l�Wo�,rK%���V��%�D��jݴ���O����M$����6�����5G��Š9,��Bxx|��/��vP�O���TE�"k�J��C{���Gy7��7P��ہuȪ��u��R,��^Q�9�G��5��L߮���cD����|x7p�d���Yi����S���ශ��X���]S�zI;�߮��o�HR4;���Y� =r�JEO ��^�9����՜��g�T%&��� x�U[�U��9� 0000001910 00000 n Chances are that you will end up with an asset giving very low returns. This omission is surprising: housing represents two-thirds of a typical American household’s portfolio (Goetzmann, 1993; Brueckner, << /ProcSet [ /PDF /ImageB /ImageC /ImageI ] /XObject << /Im2 18 0 R >> >> 18 0 obj 16814 The risk-return relationship. However, a few interesting research publications which I felt important for this paper been provided. 0000000016 00000 n the risk-return trade off of their age. Various asset pricing models can be utilized in empirical testing to determine the dominant risk factors affecting returns. endstream << /Length 30 0 R /Filter /FlateDecode >> 0000110282 00000 n endstream 16 0 obj In the policyholder case. Diversification enables you to reduce the risk of your portfolio without sacrificing potential returns. Understanding the real risk-return relationship involves two things. 29 0 obj 25 0 obj 2.1 Some Historical Evidence Risk is a most slippery and elusive concept. endobj RISK-RETURN RELATIONSHIP ON EQUITY SHARES IN INDIA 1. stream Risk-Return relationship in investments. Finding the right balance of risk and return to suit your goals is an important step in the investing process. The risk return relationship in global markets has been examined at length in academia. Display Slide 8. Risk & Return relationship ... Risk Return tradeoff - Equities The overall risk is lower in diversified portfolio or mutual funds due to diversification Single stocks carry more stock specific risks Futures are more riskier and have a higher expected return profile due to presence of leverage. 5621 The significance of risk-return relationship is advocated from both investors and organizations. %PDF-1.4 %���� 1079 startxref On Risk-Return Relationship: An application of GARCH(p,q)-M Model to Asia_Pacific Region the risk-return relationship for housing, controlling for observable time-varying factors such as population 5In slow-growing and declining markets, since new construction is not pro table, supply constraints are irrelevant. The risk-return relationship is explained in two separate back-to-back articles in this. endobj x��1  �Om�@a��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`�20� endobj There is no doubt that it is the road to take if the aim is to better understand the causality linking risk and return. h�b```b``)c`a`� ad@ AV6�8�F� �d08���p����s��xg��4�5T��Z��Ta�p����t�[W,B,��(��}�t�9���Bq��=o�V�Xj��Ӧy&y�1�3I x��wTS��Ͻ7��" %�z �;HQ�I�P��&vDF)VdT�G�"cE��b� �P��QDE�݌k �5�ޚ��Y�����g�}׺ P���tX�4�X���\���X��ffG�D���=���HƳ��.�d��,�P&s���"7C$ However, when we estimate the model using a sample after this date, the results show a negative risk–return relationship. The risk-return relationship will now be measured in terms of the portfolio’s expected return and the portfolio’s standard deviation. 5 0 obj Introduction The Indian stock market has gained a new life in the post-liberalization era. The Capital Asset Pricing Model (CAPM), which describes the relationship by a simple linear regression, and the Fama-French three factor model (Fama-French model), a significant extension of the CAPM, are two most popular and recognized models. 17 0 obj However, not investing your money is also risky. stream The purpose of this paper is to present a nontechnical introduction to modern portfolio theory. Introduction Standard finance studies emphasize that risk and return are positively correlated and … regard to risk return relationship in such a situation are partially proved in few sectors. `�ؼb~�?��6E!�*D���lt��+� +�iclM� Th���z� ��i}��LP'ϧC| ����6����*�;��r�@��"k�@�A���3f4_3�ja�Q�O�� �����~�yv���� �j:��ޯ��3��>�^#_泣jI��nY W}�s�t�]}�ߧ�s�af�@9�d�ZA��c�W�^#f���>�%|ht�#3N3� � Qy`G���a��D|@ B�xb������<2A�Ƌ�#+evsp˞WY��Iw�Kp"�jO�,�/A3r�! 0000085478 00000 n Ⱦ�h���s�2z���\�n�LA"S���dr%�,�߄l��t� 8203 0 obj <>stream ; When you’re choosing a mix of the three, it’s important to understand how they differ on risk and return. 2612 The development of the shipping trades created fresh equations for risk and return, with the risk of ships sinking and being waylaid by pirates offset by the rewards from ships that made it back with cargo. !�'��O�Z�b+{��'�>}\I��R�u�1Y��-n6yq��wS�#��s���mWD+���7�w���{Bm�Ͷ?���#�J{�8���(�_?�Z7�x�h��V��[��������|U Evaluating the relationship between expected rate of return and the risk of asset would help investors to make better and more accurate decision on investing in different industries. << /Length 25 0 R /N 3 /Alternate /DeviceRGB /Filter /FlateDecode >> Corpus ID: 167347521. [28] described the experience of DSE after the scam of November 1996 by applying Capital Asset Pricing Model (CAPM) and Efficient Market Hypothesis (EMH). O*��?�����f�����`ϳ�g���C/����O�ϩ�+F�F�G�Gό���z����ˌ��ㅿ)����ѫ�~w��gb���k��?Jި�9���m�d���wi獵�ޫ�?�����c�Ǒ��O�O���?w| ��x&mf������ For example, putting your money under the mattress invites the risk of theft and the loss in purchasing power if prices of goods and services rise in the economy. Currently the best and most famous two theories to quantify the trade-off between risks and return are the Capital Asset Pricing Model (CAPM) and the Arbitrage Pricing Model (APT). endstream Keywords: reference point, behavioral finance, risk averse, risk seeking, ex-post return 1. ?�@a��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`���� The significance of risk-return relationship is advocated from both investors and organizations. Three of the most famous and early papers on this topic were Sharpe (1964), Lintner (1965) and Black (1972), who all believed that there was a significant relationship between beta and expected returns as per the CAPM. [7A�\�SwBOK/X/_�Q�>Q�����G�[��� �`�A�������a�a��c#����*�Z�;�8c�q��>�[&���I�I��MS���T`�ϴ�k�h&4�5�Ǣ��YY�F֠9�=�X���_,�,S-�,Y)YXm�����Ěk]c}džj�c�Φ�浭�-�v��};�]���N����"�&�1=�x����tv(��}�������'{'��I�ߝY�)� Σ��-r�q�r�.d.�_xp��Uە�Z���M׍�v�m���=����+K�G�ǔ����^���W�W����b�j�>:>�>�>�v��}/�a��v���������O8� � 0000004396 00000 n 12 0 obj endobj stream Evaluating the relationship between expected rate of return and the risk of asset would help investors to make better and more accurate decision on investing in different industries. Kim & Burgers (May 1993), tries to study and explain their experiences on Bowman's paradox that firms with high returns can have low risk. 0000004125 00000 n xref << /Length 27 0 R /N 3 /Alternate /DeviceRGB /Filter /FlateDecode >> Return refers to either gains and losses made from trading a security. relationship between risk and return using some unexplored risk mea-sures that seem to capture quite closely the actual risks being valued in the market. endobj endobj [ /ICCBased 26 0 R ] endobj The following table gives information about four investments: A plc, B plc, C plc, and D plc. endobj x՝}���q���Oє}�K�. �FV>2 u�����/�_$\�B�Cv�< 5]�s.,4�&�y�Ux~xw-bEDCĻH����G��KwF�G�E�GME{E�EK�X,Y��F�Z� �={$vr����K���� The entire concept of security analysis is built on two concepts of security: return and risk. The headlines: There are three major types of investments used to build your portfolio: equities, bonds, and alternative investments. Again try finding an asset that offers very high returns. 0000007514 00000 n 87 1. and Minxian Yang. Risk – Return Relationship. stream 24 0 obj relationship between risk and return. %PDF-1.3 endstream Once such a normative relationship between risk and return is obtained, it has an obvious application as a benchmark for evaluating the performance of managed portfolios. Assume that our investor, Joe has decided to construct a two-asset portfolio and that he has already decided to invest 50% of the funds in A plc. !C�=Ts=/JU� V�K2���A1F��7��(Bk[���:6�,i[i�F���NsLq���в:�D���s�a4�u���r������G#��+˺�P�|t6�/�R`���6�V�F�;�{�h��#���3�����0�n��e3Ȩ�>i�`�~ѯdc�1���������~]��o��N��Ц�9���P����K�6F�ܓ�".�P���+S��� :S�GN���S���(r-���{|�2�C�������\�F��Pf�:�,�RS��=����t(��1��P�c�)p�����mJw^�[-��U�+��eu�(�P�Đ>a���*������� �3�̌�8��I-�c���'�� +k�� ��l�@�w���t��� �5��������9���{$�i^��z���u��G���qp�P��V���(Ѓ*+ԶN�=�[o�����&���4��`�(��|����?y��F� '-_tj���_N�z�$L�1E@u���, F�D�q��h``R2X\\. 0000000673 00000 n This implies an asymmetric impact of supply constraints on the two risk-return effects in fast-growing markets: 5 while the strength of the financial risk effect is independent of how quickly housing stock can be added, the extent to which the consumption hedge effect is capitalized into the risk-return relationship depends crucially on supply elasticities. The Relationship between Risk and Return. May include stocks, bonds and mutual funds. endobj Many have been skeptical towards this model as they have endobj • With less risk, there is often less potential for large financial gains. In investing, risk and return are highly correlated. 1524 endobj fundamental risk / return relationship, in which higher risk requires higher return & vice versa. There are four major asset classes that make up most portfolios: equity, bonds, cash, and alternative investments. A positive relationship between the expected excess return and the conditional variance is documented by + read full definition and the risk-return relationship. Their data covered the period 1926 through 1978. Mobarek and Mollah [29] suggested that there are some … << /Length 5 0 R /Filter /FlateDecode >> on risk return relationships and how the securities react to the changes in the market. After reading this article you will learn about the relationship between Risk and Return. x��1  �Om O�@a��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��0`��|�C Been examined risk-return relationship pdf length in academia this date, the sign of the portfolio ’ expected..., or a larger financial gain we estimate the model using a Sample after this date, the the!, the higher the potential return of an investment, the sign the... 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