Explain Briefly these five methods of dealing with risks. the risk may be avoided the risk may be retained the hazard may be reduced the losses may be reduced the risk may be shifted

Q: Wade Ellis buys a car for $16,278.13. He puts 10% down and obtains a simple interest amortized loan ...

A: Given, The loan amount is $16,278.13 Down payment is 10%Rate of interest is 11.5%.

Q: An investment project involves an investment now of 100. In one year, a positive cash flow of 40 is ...

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Q: Synovec Corporation is expected to pay the following dividends over the next four years: $6.10, $17....

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Q: 1. On July 15, 1996, what will John receive on selling note to Ben to whom money is worth 4% compoun...

A: Note : We’ll answer the first question since the exact one wasn’t specified. Please submit a new que...

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Q: What is the amount of each​ payment?

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Q: In honor of International women's day, How do you feel empowered as a woman in the field of finance?

A: Finance is referred as the process of raising the capital or funds for the different kind of expendi...

Q: Taking the corporate taxes into account, if there is no possibility of financial distress, a firm ca...

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Q: Home Products Inc. (HPI) entered into a contract on June 30, Year 1, to buy 750,000 pounds of alumin...

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Q: Choose from the two machines which is more economical: Machine B 14000 P2,000 Machine A First Cost P...

A: Taxes and Insurance = 3% Interest Rate = 16%    

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Q: Prepare a schedule for the following bond, including calculations, yearly income, end-of-year accumu...

A: Given:

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Q: Automotive Excellence Inc. borrowed $17,000.00 on May 11 with an interest rate of 10.7% per annum. O...

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Q: Market conditic characterized b

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Q: Weekly (Feb 21-27) Projected Actual Difference Food Cost $6,971 $7,842 +$871 (over) Beverage Cost $3...

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Q: 8. (6) If RL equals 5%, what is the preferred investment using Roy's safety-first criterion for the ...

A: Roy's safety first criterion: Roy's safety first criterion sets a threshold limit based on an invest...

Q: What is Chipotle’s TIE

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Q: You are considering two ways of financing a spring break vacation. You could put it on your credit c...

A: The option with lower effective annual rate should be chosen.

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.