What is the relationship b/w the risk and the return of the stock With explanati

Question

What is the relationship b/w the risk and the return of the stock
With explanation please coz I don’t how to determine that if there’s missing information tell me?


BALANCE SHEET STATEME OF INCO CASH FLOW DETAILED REPORTS AND XBRL STATEME ANNUALLY QUARTERLY BALANCE SHEET 2017-12-31 2016-12-31 2015-12-31 Policyholders Ph) Assets: +Investments 1,988,205 ,121,969 530,158 and Cash at Banks +Receivables, 263,285 310,802 261,743 Net Other Assets 508,483 415,613 417,472 +Total Ph 2,759,973 1,848,384 1,209,373 Assets Shareholders Sh) Assets + Investments 493,390 473,598 500,363 and Cash at Banks SH Other Assets SH 381,015 204,546 80,967 Total Sh 874,405 678,144581,330

Explanation / Answer

Risk and Return can be calculated using

1- Sharpe Ratio = (Stock Return - Risk free Rate) / Standard Deviation of Stock Returns.

Higher the ratio, gretaer the return relative to risk.

2- Treynor ratio = (Stock Return - Risk free Rate) / Beta

Beta = Covariance (Market Returns, Stock returns) / Variance (market Returns)

Determines risk premium adjusted to market risk

3- Information ratio: (Stock Return - Bench mark Index returns) / Standard Deviation of Stock Returns

Measure stockreturns above the returns of a benchmark.

By using Stock price data, index and Risk free rate relationship b/w the risk and the return of the stock can be calculated.

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