Ripple theory of risk and return: a contemporary approach on measuring expected rate of return / Ruzzle Affandee

In order to really understand the objectives of this study, it is necessary here to clarify the meaning of investment. Investment as defined by the Cambridge Dictionary (2018) represent the act of concentring one’s money, effort and time with sole objectives to aggrandizing the initial deposit and gain more advantages. This refers to as the act of obtaining return or yield from any given asset. However, for every return they expected to receive, there is always risk conjoined for every portfolio taken by the market players, be it internal or external risk (Harvey, 2012). Study of risk and return correlation of an investment has been broaden by time in which the disciples introduced the market with the Risk and Return Trade-off.