Characterizing risk and return

Great job on this assessment about risk and return thus far! Please see my feedback below, refer to our course resources and course tutor, and resubmit the assessment once revised. Please highlight your changes.

Keep up the great work!

Dana 

COMPETENCY: Define finance terminology and its application within the business environment.

CRITERION: Explain how risk is measured.

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BASIC

NON-PERFORMANCE

Basic

Explains how risk is measured but omits key elements.

Faculty Comments:“

Good start addressing this criterion; however, your explanation is incomplete. Going back to Weaver and Weston (2001) Chapter 10, what specific methods are used to measure risk? 

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CRITERION: Explain what the coefficient of variation measures.

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BASIC

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Proficient

Explains what the coefficient of variation measures. 

Faculty Comments:“

Good job describing the coefficient of variation! What are some examples in which the coefficient of variation is taken into account? 

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CRITERION: Calculate the dollar return on an investment.

DISTINGUISHED

PROFICIENT

BASIC

NON-PERFORMANCE

Distinguished

Calculates the dollar return on an investment and explains the calculation. 

Faculty Comments:“

Very good job on your calculations of the total dollar return of Conglomco stock! How much would the dollar return have to be in order for an investor to double their investment of 200 shares? 

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CRITERION: Calculate the percentage return on an investment.

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BASIC

NON-PERFORMANCE

Distinguished

Calculates the percentage return on an investment and explains the calculation. 

Faculty Comments:“

Very good job on your calculations of the percentage return of Conglomco stock! If the investor would build a portfolio of 200 shares of Conglomco and 100 shares of a second company yielding a return of 10%, how much would the portfolio return be? 

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CRITERION: Calculate the coefficient of variation of stocks.

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PROFICIENT

BASIC

NON-PERFORMANCE

Distinguished

Calculates the coefficient of variation of stocks and explains the calculation. 

Faculty Comments:“

Excellent job on your calculations of the coefficient of variation of Conglomco, Supercorp, and Megaorg stocks! 

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CRITERION: Calculate the portfolio return.

DISTINGUISHED

PROFICIENT

BASIC

NON-PERFORMANCE

Distinguished

Calculates the portfolio return and explains the calculation.

Faculty Comments:“

Great job on your calculations of the portfolio return! 

”

COMPETENCY: Evaluate the financial health of an organization.

CRITERION: Define the concept of risk.

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Distinguished

Analyzes the concept of risk and connects the analysis to relevant real-world examples. 

Faculty Comments:“

Great job explaining what risk means in finance! The level of risk is one of the primary measures in investment decision-making.  

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CRITERION: Identify a source of firm-specific risk.

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Proficient

Identifies a source of firm-specific risk.

Faculty Comments:“

Good start on your discussion of firm-specific risks! How do firm-specific risks fit into the overall total risk of a stock? 

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CRITERION: Identify the total level of risk of a stock.

DISTINGUISHED

PROFICIENT

BASIC

NON-PERFORMANCE

Proficient

Identifies the total level of risk of a stock. 

Faculty Comments:“

Very good job discussing market risk and some of its possible sources! How does market risk fit into the total risk of a stock? 

”