If a manager requires greater return when risk increases, then he is said be....... A. risk-seeking B. risk-indifferent C. risk-averse D. risk-aware
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If a manager requires greater return when risk increases, then he is said be.......
A. risk-seeking
B. risk-indifferent
C. risk-averse
D. risk-aware
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- Which is least likely? A. For the risk-seeking manager, no change in return would be required for an increase in risk. B. For the risk-averse manager, required return would decrease for an increase in risk. C. For the risk-indifferent manager, no change in return would be required for an increase in risk. D. A and BWhat is the main goal of the financial manager? How does the risk return trade-off relate to the financial manager's main goal?Both financial and nonfinancial performance measures are key inputs when evaluating the performance of managers. a. true b. false
- If an investor prefers investment with higher risk , regardless to the return then he is following a ________ strategy. a. risk-aware b. risk-neutral c. risk-averse d. risk-seekingWhen risk grows while an investor's return remains constant, that investor is said to be a. Risk-Neutral b. Risk-Averse c. Risk-seeking d. Risk-AwareThe tendency for managers to behave like the performance metrics are the strategic objectives is known as a. motivated reasoning b. common measures bias c. surrogation d. metrics errors
- What is the relationship between financial decision making and risk & return? Would all financial managers view risk-return trade-offs similarly?If there are deviations from the stated goals and objectives, what steps can managers take to get back on track? Provide at least two specific examples.Considering the above risk-adjusted portfolio metrics (Sharpe ratio, Treynor ratio, Sortino ratio, information ratio, alpha), which is the overall best measure for evaluating the performance of an active manager, and why?
- What is forecasting risk? Why is it a concern for the financial manager?Which is risk in the context of financial decision making and performance? Does performance increase or decrease with the type of risk you identify with?which of the following quantifies how closely a manager's return pattern follows that of a benchmark index? Scenarios Value risk Tracking error multi factor model
