A Study on Risk and Return Management in Automobile Industry
Author(s)
Adarsh N. (Student, School of Commerce, REVA University, Bengaluru, India), G Narayana Swamy*(Assistant Professor, School of Commerce, REVA University, Bengaluru, India) and Harani B.(Assistant Professor, School of Commerce, REVA University, Bengaluru, India) *Corresponding author's Email
Adarsh, N.; Swamy, G Narayana and Harani, B. (2019), “A Study on Risk and Return Management in Automobile Industry”, MERC Global’s International Journal of Management, Vol. 7, Issue 4, pp. 266-275.
Article history
Submitted: April 19, 19, Revision received: May 30, 2019, Accepted: June 26, 2019
Successful investment needs a vigilant valuation of the investment's possible returns and its risk of loss. A firm's risk and expected returns directly affect its share price. In real-life situations, the risk of any sole investment would not be observed individually of other assets. New investment needs to be considered in light of their impact on the risk and return of the portfolio. In traditional financial analysis, investment management tools allow investors to assess the return and risk of individual investments and portfolios. Generally, the higher the possible return of an investment, the greater the risk. There is no assurance that you will really get a sophisticated return by accepting extra risk. So, a universal understanding of this phenomenon is not sufficient to make correct decisions connecting to investments. A more critical analysis is required to know the investment. This study helps us to understand how the companies diversify themselves in automobile industry and in different companies to maximize the returns and to minimise the risks involved in it.
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