The Trade-off between Risk and Return
Expected returns, diversification, and measuring risk in financial markets
About This Course
Course Information
Data is the lifeblood of many large financial organisations, and aggregating and reporting risk data have become increasingly important. The course introduces enterprise risk management (ERM), a common and important method for assessing and managing risk in an organisational context, and discusses its future trends.
Certificate on Completion
This course is made up of videos, questions and additional reading materials, and accounts for 3 units of CPD. One unit is the equivalent of one hour of learning.
Course Sections
This course is made up of the following sections:
- Principles for effective data aggregation and risk reporting (video)
- Effective data aggregation (quiz)
- Enterprise risk management (video)
- Enterprise risk management (quiz)
- ERM analysis tools (video)
- ERM analysis tools (quiz)
What You Will Learn
- Explain the relationship between risk and expected return for different asset classes
- Distinguish between systematic risk and specific risk in an investment portfolio
- Describe how diversification reduces portfolio risk without sacrificing expected returns
- Identify the role of standard deviation and beta as measures of investment risk
- Evaluate the trade-offs investors face when choosing between higher returns and greater volatility
Who This Course Is For
- Accountants and finance professionals looking to strengthen their understanding of investment risk concepts
- Professionals preparing for roles that involve portfolio analysis or client advisory on investments
- CPD learners who want a grounding in risk-return principles before studying more advanced topics like portfolio theory
Prerequisites
- No prior knowledge of financial risk is required
- A basic understanding of financial markets and common asset classes (stocks, bonds) is helpful
Frequently Asked Questions
Course Details
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