Volatility of Market Portfolio and Volatility of Stock Returns

Mahjoobeh Hajalizadeh, Esmat BorumandTombeki, Mahdieh Abedini

Abstract


One of the basic criteria for making decisions on the exchange is stock returns. Stock returns has, in itself, information content. Most of actual and potential investors use stock returns in financial analysis and forecasts. Today, investment includes the bulk of economic activities. One of the requirements of development in any society is investment. Any investor to invest, pays attention to several factors, most notably of which is the return on investment, and prediction of the return obtained from that investment. In different cases of investment (assuming constant risk), the investor usually chooses the case, which has higher return.

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