Experiment: risk primium and return you ask for investment - Research Proposal Example

It’s the rate of return from the investment that a rationale investor perceive prior to taking any investment decision by investing in various financial instruments including shares, debentures, mutual funds and bonds among other. Moreover, in the current scenario, investor potentially determines the probability of risk-return tradeoff attached with the potential investment phenomenon. Besides, risk and return are most important concept that investor takes in respect of making their financial decision, as the different financial instruments have different characteristics, prospect of profitability as well as cost.

Based on the perspective of investor’s, they analyses whether they get appropriate returns in respect of the risk they bear with the investment decision (Gotze, Northcott & Schuster, 2015). Correspondingly, this study will aim towards determining whether the return that investors are likely to perceive to be related with risk that they take at the time investment. In this respect, the experiment will be design to test hypothesis that has been framed in the following section. Designing the aspect in which experiment will be conducted is an integral characteristic of any experimental study to ascertain the objectives of the experiment and serve as blueprint, which outline the key as well as the detail plan to derive ultimate outcome.

Moreover, any experiment is likely to comprise various activities that need to be compelled. In this regard, this experiment will be designed on the basis of four different phases in which the first phase of the experiment will incline towards gaining a brief theoretical aspects related to the experiment that will be carried out. On the other hand, the other phases will provide support to the experiment conducted with the use of practical findings to determine the result. In this context, the first phase of experiment will provide brief understanding regarding the aspect of