Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

True or False

1. Pure risk exists when there is uncertainty as to whether loss will occur.
2. If two companies have the same number of exposure units and experience the same average number of losses, then the degree of risk for each company tends to be equal.
3. Risk avoidance is a conscious decision not to expose oneself or one's firm to a particular risk.
4. Loss control may take the form of frequency reduction, severity reduction, or diversification.
5. Diversification across various businesses or geographic locations can serve as a form of risk transfer.
6. The present value of $600,000 in 3 years at 8 percent is $476,299.34.
7. A common method of handling a speculative risk is through the process called hedging.
8. Risks that are considered too great to retain and too expensive to transfer might be handled by means of risk retention.
9. Adjusted return of capital assesses how much capital would be required to keep the probability of bankruptcy below a specified level.
10. Subjective risk is the process of systematically managing risks through the following steps: identifying risks, evaluating risks, selecting risk management techniques, and implementing and reviewing decisions.
11.The expected rate of return from an investment is equal to the expected cash flows divided by the initial investment.

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M927361

Have any Question? 


Related Questions in Basic Finance

1 define external validity and indicate its importance to

1. Define external validity, and indicate its importance to scientific progress. 2. Why is it never possible to know whether a research finding will generalize to all populations of individuals? How do behavioral scienti ...

Budget assignmentrefer to the city of granston case 11-3 at

Budget Assignment Refer to the City of Granston Case 11-3 at the end of Chapter 11. Using the ‘Current Year Q-3' data found in Exhibit 2 and Exhibit 3, create a project supply and materials budget based on the informatio ...

A common stock currently has a beta of 17 the risk-free

A common stock currently has a beta of 1.7, the risk-free rate is 7 percent annually, andthe market return is 12 percent annually. The stock is expected to generate a constant dividend of $6.70 per share. A pending lawsu ...

1 distinguish between theory model and hypothesis2 describe

1. Distinguish between theory, model, and hypothesis. 2. Describe how researchers use induction versus deduction to generate research hypotheses. 3. Describe the process by which hypotheses are developed and tested.

A simple random sample of 120 men results in a mean of 80

A simple random sample of 120 men results in a mean of 80 beats per minute, and a standard deviation of 11 beats per minute. Based on the sample results, the researcher concludes that the pulse rates of men have a standa ...

1 explain the differences between a cmo and a mortgage

1. Explain the differences between a CMO and a mortgage pass-through type of security. 2. Define a mortgage purchase "for portfolio." 3. Discuss the purpose and operation of Ginnie Mae. 4. What would be the price of a $1 ...

Hypochondriacs are obsessed with their health talk a great

Hypochondriacs are obsessed with their health, talk a great deal about their real and imagined health problems, and visit their physician frequently. Imagine that you developed an 8-item self-report measure of hypochondr ...

Some machines require two registers for certain

Some machines require two registers for certain single-precision values. Suppose that the result of a multiplication of single-register quantities requires two consecutive registers, and when we divide a=b, the value of ...

1 what is the importance for an individual of understanding

1. What is the importance for an individual of understanding time value of money concepts? For a corporate manager? Under what circumstance would the time value of money be irrelevant? 2. From a time value of money persp ...

1 compare and contrast manufacturing and geographic

1. Compare and contrast manufacturing and geographic postponement. 2. Define and illustrate cash-to-cash conversion, dwell time minimization, and cash spin. How do supply chain strategy and structure impact each? 3. Disc ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro