Investments are based on the belief that the rate of return justifies or compensates the investor for the risk associated with that particular investment. The risk associated with this investment is the chance that a loss will be incurred. Or, to put it another way, the greater the chance of a loss the riskier the investment. Therefore, some statistical measures of the risk involved with an investment are necessary before the investment is made.
Address one of the following prompts in a concise but thorough manner.
What is the Expected Rate of Return on investment and what does it tell us about the probability of the risk involved with a particular investment?
In terms of risk, what are the advantages (and/or disadvantages) of a well-diversified portfolio?
Sample Solution
The expected rate of return on an investment is the average amount of money that you can expect to earn over a given period of time. This number reflects the probability of various outcomes and includes both positive and negative returns. It is calculated by taking into account all potential risks associated with an investment, such as market volatility or economic downturn. The higher the expected rate of return, the more likely it is that the investor will earn a profit from their investment. Conversely, a lower expected rate of return indicates greater risk associated with the investment.
Sample Solution
The expected rate of return on an investment is the average amount of money that you can expect to earn over a given period of time. This number reflects the probability of various outcomes and includes both positive and negative returns. It is calculated by taking into account all potential risks associated with an investment, such as market volatility or economic downturn. The higher the expected rate of return, the more likely it is that the investor will earn a profit from their investment. Conversely, a lower expected rate of return indicates greater risk associated with the investment.
According to Eeds and Cockrum (1985) while there exists a wide variety of ways to deal with vocabulary, the use of dictionary as the conventional method of instruction, in both first and second language learning, has been triggered. Marckwardt (1973), for example, comments: Dictionaries often supply information about the language not found elsewhere. Dictionaries often supply information about grammar, usage, status, synonym discrimination, application of derivative affixes, and distinctions between spoken and written English not generally treated in textbooks, even in a rudimentary fashion (cited in Bensoussan, Sim & Weiss, 1984: 263). Laufer (1990), similarly, believes that when word looks familiar but the sentence in which it is found or its wider context makes no sense at all, the learner should be encouraged to consult a dictionary (p.154).
Consulting a dictionary during an independent reading helps readers to find the meaning of the difficult vocabulary, ascertain the meaning of the unfamiliar word based on contextual information and provide further exposure for the word in other contexts, with different collocates and constructions, by making the student think about the words in relation both to the passage being read and the dictionary. In regard to the use of dictionary in second language learning, there are a number of studies reported in literature. A handful of L2-based studies have been conducted on the effects of dictionary use on reading and vocabulary learning. Bensoussan et al. (1984) did a pilot study to ascertain the effect of dictionary use on students’ performance on a reading comprehension test. Ten different passages with multiple-choice questions were administered to approximately 900 first-year students at Haifa University. Finally, he concluded that there was no significant difference in test scores between those who used the dictionary and those who did not. Luppescu and Day (1993) examined whether the use of a bilingual dictionary enhanced vocabulary learning on a reading task. A group of Japanese university students (N = 293) read a story that included 17 unknown words whose meaning could be inferred; half the group had access to a bilingual dictionary while half had no dictionary. After reading, all were given a multiple choice vocabulary test. The group that had access to the dictionary had a mean score on the vocabulary test that was 50% higher than the no dictionary group. This suggests that the use
