The document provides an overview of risk and return concepts as part of a Principles of Managerial Finance course. It defines key terms like risk, return, portfolio, and sources of various risks. It discusses measuring risk of single assets using metrics like expected return, standard deviation, and coefficient of variation. It then covers how diversification reduces risk in a portfolio by combining assets with low correlations. Finally, it introduces the Capital Asset Pricing Model (CAPM) which links an asset's risk to its expected return based on the asset's sensitivity to non-diversifiable market risk as measured by its beta coefficient.