Return concepts and measurement

Return concepts and measurement

Bachelor of Business Studies (BBS) — Fourth Year

Subject: Fundamentals of Investment (FIN 253)

Unit 4: Risk, Return and Portfolio Management

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of return concepts and measurement.
• Apply the relevant financial concepts or calculations and explain their assumptions, risks and analytical limits.

Curriculum Scope

• Concept of return: components of return, importance of return, factors affecting the level of return, historical returns
• Measuring return: real, risk-free and required return, holding period return, expected return

Detailed Microsyllabus

1. Return foundations

   1. Income and price-change components.
   2. Factors affecting returns.
   3. Historical measurement.

2. Return measures

   1. Real, risk-free and required return.
   2. Holding-period and expected return.
   3. Use consistent periods, probabilities and assumptions.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 89–91.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Examples involving current laws, rates, institutional products or Nepalese status must identify the relevant period and official materials; no changing numerical or legal requirements are invented here.