The United States Army considers itself descended from the Continental Army, and dates its institutional inception from the origin of that armed force in 1775. As a uniformed military service, the Army is part of the Department of the Army, which is one of the three military departments of the Department of Defense.
Pure risk, also known as absolute risk, is insurable. Speculative Risk: Three possible outcomes exist in speculative risk: something good (gain), something bad (loss) or nothing (staying even). Gambling and investing in the stock market are two examples of speculative risks.
Determine an investment's beta. Find the expected return using CAPM for that beta and use this interest rate as the appropriate discount rate. Summary of Risk and Return. Total risk-the variance (or the standard deviation) of an assetâs return. Total return-the expected return + the unexpected return. Systematic and unsystematic risks. Systematic risks are unanticipated events that affect almost all assets to some degree.