Given that you know the risk as well as the expected return for two shares, discuss what process you might utilise to determine which of the two shares the better buy is.

Financial management full assignment | Business & Finance homework help

When deciding which of two shares is the better buy, I would start by assessing the expected return for each stock. This would involve looking at both the short and long-term returns that can be expected from investing in each share. For example, I would consider factors such as current market conditions, past performance of similar investments, estimates for future growth potential etc. From this information, I could develop a projection of how much profit or loss can be expected from either stock on different time frames (short-term vs long-term).
Next, I would assess the potential risks associated with buying each stock. These risk factors include things like volatility in their respective markets and any external events that could impact returns such as political instability or natural disasters. Additionally, it may be helpful to research what other investors are doing – particularly experienced ones – so that one can benefit from their knowledge and understanding of market dynamics. Finally, after taking into account all these factors plus any personal considerations related to one’s individual financial goals/situation etc., I could choose which stock is the best buy based on its combined expected return and risk profile compared to other options available to me