These different elements are important in providing investors with the ability to balance out potential hazards and maximize their overall returns. (Adcock, 2010) To improve the percentage gains and dividends they are receiving requires spending more time studying their investments
These insights are showing how different forms of regression analysis must be utilized to fully understand what is taking place. (Brown, 2010) As a result, the CAPM approach can provide a good background about what is happening in the markets and effectively accounting for risks
The best way to achieve for these objectives is use other areas which can be augmented under the CAPM model. (Chang, 2011) For instance, Chang (2011) concluded that regression analysis is successful in accounting for select amounts of risk
This is providing them with more choices. (Fogelstrom, 2010) However, during this process, there needs to be a focus on mitigating risks utilizing a number of strategies
This helps managers to make informed decisions about possible reactions based upon systematic events. (Estrada, 2002) Moreover, Brown (2010) determined that different approaches must be utilized under the CAPM model to account for risk
GDP). Fig 1: United States GDP between 2004 and 2012 Source: Trading Economics (2013)
GDP). Fig 1: United States GDP between 2004 and 2012 Source: Trading Economics (2013)
GDP). Fig 1: United States GDP between 2004 and 2012 Source: Trading Economics (2013)
GDP). Fig 1: United States GDP between 2004 and 2012 Source: Trading Economics (2013)
diversification would be the key to mitigating risk in unfavorable market conditions. If we look at reality for a minute we see that stocks that rise and fall together will most certainly crash together as was evidenced in the past (Lopus, 2005)
Rather, your objective should be to create an efficient portfolio, that is one which will maximise your return for a certain level of risk, or alternatively minimise your risk for a required level of return. (McMenamin, 1999, p