# Ch 11: Accounting Risk & Return

Explore the formulas that enable the calculation of risk and return for a given investment. Our comprehensive video lessons come with a topic-by-topic interactive timeline feature to aid in review.

## Accounting Risk & Return - Chapter Summary and Learning Objectives

This chapter takes you through the calculation of risk and return. Learn the best way to measure returns and a theory of how markets work efficiently. These lessons are designed to be multifaceted in order to enhance comprehension and retention of the subject matter. This chapter covers the following topics:

• Dollar and percentage returns
• Rate of return
• Standard deviation and variance
• Normal distribution
• The history of capital markets
• Average returns
• Capital market efficiency

Video Objective
Percentage vs. Dollar Returns Look at the difference between dollar and percentage returns.
How to Calculate the Rate of Return: Definition, Formula & Example Learn to calculate average returns and risk premiums and study the historical record.
Standard Deviation & Variance in Finance Explore the calculation of variances and standard deviations.
Normal Distribution: Definition, Properties, Characteristics & Example Discover why normal distribution is useful.
The History of Capital Markets Examine how the history of capital markets can be used.
Geometric vs. Arithmetic Average Returns Learn the difference between arithmetic and geometric averages.
Capital Market Efficiency & Price Behavior Study the efficient markets hypothesis and its limitations.

7 Lessons in Chapter 11: Accounting Risk & Return
Test your knowledge with a 30-question chapter practice test
Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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