Systematic and Unsystematic Risk of Rates of Return Associated with Selected Forest Products Companies
James E. Hotvedt and
Philip L. Tedder
Journal of Agricultural and Applied Economics, 1978, vol. 10, issue 1, 135-138
Abstract:
The objective of most investors in stocks or other assets is to maximize the expected returns in a given risk class; in other words, to minimize risk for a given level of expected returns. Although “risk” may connote the chance of injury or loss, the term is not defined so narrowly in this article. Rather, it is used to reflect volatility in stock or other assets' rates of return and should not be confused with risk and uncertainty in the production process. Risk, as approached herein, equals the variance of historical rates of return about the average rate of return.
Date: 1978
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