Question

How can we find the characterstics of risk and return from stock price vs date graph for different companies.

Answer 1

An annual return, or annualized return, is a percentage value that tells you how much an investment as increased in value on average per year over a period of time.

While risk is the fear of loss due to declining price of an investment .

Characteristics of Risk and Return from Stock Price v/s Date Graph.

1. Return on a stock is directly related to its price, as soon as return increase demand of that particular stock increses leading to increase in stock price .

2. Majorly high price stocks provide high returns.

3. High fluction in stock price brings trading opportunities throughSale and Purchase of stock but fluctuating returns.

4. High fluctions in stock price comes with high risk and unstable return.

5. Date graph shows the risk and return status of a investment over a period of time. Taking into the

pattern of price high and low affecting the return of investment .

6. Through a date graph one can identify the level of fluctions in price which is risky for an investment.

7. Little fluctuations on a date graph shows there is a constant return on investment with little risk .