Risk and return measurement

Risk and return measurement

Bachelor of Business Studies (BBS) — Second Year

Subject: Fundamentals of Financial Management (MGT 215)

Unit 4: Fundamentals of Risk and Return

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of risk and return measurement.
• Apply the relevant financial model, calculation or analytical approach and explain its assumptions and decision implications.

Curriculum Scope

• Definitions
• Expected and historical return rates
• Standard deviation
• Coefficient of variation

Detailed Microsyllabus

1. Return measurement

   1. Expected returns from outcome probabilities.
   2. Historical holding-period and average returns.
   3. Consistent treatment of income and price change.

2. Risk measures

   1. Variance and standard deviation.
   2. Coefficient of variation where meaningful.
   3. Compare risk and return under suitable definitions.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 41-43.

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.