2. Three Daunting Tasks of Finance Manager A. Measurement of Income (Return) B. Measurement of Risk C. Risk-Return Trade-Off
3. A.Measurement of Income Return On Investment: Relation between Operating Profit(EBIT) to Capital Employed EBIT=Sales-Variable Cost-Fixed Cost Capital Employed=Shareholders Funds + Loan Funds –Investment-Fictitious Assets
4. Probability and Expected Rate of Return Standard Deviation Sensitivity Analysis B. Measurement of Risk
5. Systematic Risk Unsystematic Risk Risk-Return Trade-Off: Measurement of Beta Factor and Alpha Co-efficient Risk-Return Trade-Off