: 10.56472/25835238/IRJEMS-V4I10P114
Rasidah G. Sarip, Abdani D. Bandera, Rasmia M. Yahya-Muti. "A Review on Risk, Return, and Valuation in Financial Management" International Research Journal of Economics and Management Studies, Vol. 4, No. 10, pp. 104-114, 2025. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V4I10P114
The intertwined notions of risk, return, and valuation are core to financial management and decision-making. The study aims at summarizing available studies on financial risk identification and management, return determination and optimization, and valuation areas that have comprehensive use in most financial settings. According to the results disclosed, financial risk is not a single-focus phenomenon but encapsulates operational, credit, market, and liquidity risks, and measuring approaches like Value at Risk and Monte Carlo simulations, as well as AI-based predictive models, enhance forecasting accuracy. Moreover, the risk-return trade-off, which transcends the concepts of the risk-return stream, dependent on Modern Portfolio Theory and the Capital Asset Pricing Model, is being consistently transformed through behavioral and technical insights. Additionally, the fair value versus historical cost concept evident in valuation studies is equally important, as there is a history of recurring problems in valuing start-ups, intangible factors, and agricultural enterprises, which are confronted with and perceived as contingent. Digital assets, fintech, and ESG investing are developing to influence conventional risk recognition and pricing techniques. In conclusion, effective financial management to guide optimal managerial decisions in a volatile operating atmosphere necessitates a harmonious blend of traditional theories, behavioral perceptions, and modern analytical resources.
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Behavioral Finance, Financial Markets, Investment Decision-Making, Portfolio Optimization, Sustainability.