ASSESSMENT OF FINANCIAL ASSETS BY THE RATIO OF "RISK-YIELD", TAKING INTO CONSIDERATION THE DURATION OF INVESTMENTS

Author(s): Berzon Nikolay Iosifovich

Rubric: Economy

Release: 2014-2 (8)

Pages: 39-52

Keywords: risk-return profile, the influence of the duration of the investment period, the comparison of stocks and bonds, the Sharpe ratio, CAPM model

Annotation: One of the fundamental concepts of financial theory is to find compromise between risk and return. In the traditional approach to ratio of risk and return - higher yield faces a higher risk. It does not take into consideration the timeframe of investments. Purpose of this article is to analyze the risk-profitability ratio of financial instruments depending on the investment period in developed and emerging markets. The analysis showed that the prolongation of the investment period reduces the risk indicators, and the yield remains almost constant. At long time periods shares indicate higher returns with lower risk

Bibliography: Berzon NI.IO. ASSESSMENT OF FINANCIAL ASSETS BY THE RATIO OF "RISK-YIELD", TAKING INTO CONSIDERATION THE DURATION OF INVESTMENTS // Economics and Management. – 2014. – № 2 (8). – С. 39-52. doi: