What are some of the weaknesses behind risk-based capital standards? Answer around 500 words.

Q: How can we Include Risk in Investment Evaluation?

A: Risk is included in the investment evaluation  by using the following  methods like Beta, Standard…

Q: Argue why,by going mulinational ,corporations can reduce their total business risk

A: corporations that move assets, products, administrations, and abilities across public limits…

Q: In our risk rating model example, we looked at a scenario that improved Atlas' risk rating from…

A: In a market, when an organization make an investment in a specific project, it will try to analyze…

Q: Based on the learnings from your project, what are the limitations of Capital asset pricing model…

A: CAPM includes a connection that explains how resources in the stock market can be valued, it…

Q: How does risk sharing benefit both financial intermediaries and private investors?

A: Risk-sharing - risk sharing is a method of sharing risk between the participants.

Q: How does diversification benefit against risk in your portfolio?

A:

Q: In which form of business ownership is the principal-agent problem likely to be the greatest…

A: Business: An organization by which goods or services are sold for earning profit.

Q: What are some examples of financial assets? Rank these examples in order of their risk.

A: A financial asset refers to the liquid assets that get their value from a contractual right or…

Q: Explain why emerging market economies is important in financial markets?

A: Financial markets represent the marketplace in which the buyers and sellers trade various financial…

Q: How can the Philippine Stock Exchange entice an average Filipino citizen to invest in securities?…

A: Savings and investments are important in the economy. For the economy to function smoothly, there is…

Q: How information asymmetry can impact economic efficiency. In your answer cover the following: a)…

A: Asymmetric information occurs when, in an economic transaction, one person or one party have greater…

Q: When can we say that risk awareness and risk management aligned with the organizational strategy

A: When a firm enters the market and compete with many competitors, it needs to make an effective…

Q: Based on this video:     https://youtu.be/Q-zp5Mb7FV0 Is this video related to the concept of…

A: From the video, we can say that the topic is related to the concept of capital markets which will be…

Q: William purchased a universal life policy on his own life. When his son Ben turned 25, William…

A: Answer -   Taxable Income:- The total income generated by an individual or a firm . If the total…

Q: There were still pirates in the 1980s, although they tended to appear in corporate boardrooms rather…

A: The Raider selects takeover at the final decision node via backward induction.

Q: Compared to a corporation, a partnership is more difficult and expensive to establish.; True or…

A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…

Q: Provide an overview of Derivitive investing and describe the potential risks and rewards.

A: A derivative is a financial instrument which is based on some underlying asset and whose value…

Q: What is the beta coefficient and what does it measure? What is the Beta coefficient of investment…

A: The beta coefficient is a measure of a company's stock price's sensitivity to market movement. It is…

Q: Discuss how the concepts of pure security,short selling and no arbitrage profit help establish and…

A: Capital market equilibrium requires that market prices be set so that supply equals demand for each…

Q: during the 2007-2009 financial crisis, the US government decided that Lehman Brothers was not too…

A: Answer: True Explanation: During the 2007-2009 financial crisis, the US government decided that…

Q: Young people with little wealth should not invest money in risky assets such as the stock market,…

A: The capital market applies to financial markets that operate for the issuance, acquisition and sale…

Q: Describe one of the simple method that is commonly used to screen capital investments?

A: The payback method is one of the simple methods used for the screening of capital investment before…

Q: The efficient market hypothesis argues that it is easier to predict changes in the level of prices…

A: There are different theories to explain the nature of a market and to determine the market…

Q: There’s no penalty for withdrawing funds from investments before they mature. True or false

A: When a depositor withdraws funds or closes out a time deposit before the maturity date, an early…

Q: Why is there a need for companies like Standard and Poor’s and Moody’s to provide ratings (i.e. AAA,…

A: Adverse selection: - Adverse selection is a problem that arises because of the difference in the…

Q: . Duration is an accurate measure of the relationship between percentage changes in a bond price and…

A: Duration can be defined as a tool for estimating how long it takes, in years, for an investor to pay…

Q: Financial institutions such as banks are prohibited from investing their funds in the stock market…

A: Financial institutions such as banks are prohibited from investing their funds in the stock market…

Q: What is the most important category of ratios to evaluate a company’s chances of filing for…

A: Need to find- What is the most important category of ratios to evaluate a company’s chances of…

Q: Provide a real-world example of "Adverse Selection" in a business or financial transaction.

A: Adverse selection occurs when one party has more information than the other engaged in a business or…

Q: What are the typical types of risk faced by a firm

A: Risk is a situation involving loss to the firm and lowers profits. There are majorly 5 types of risk…

Q: Disscuss the significance of  the efficient market hypothesis for the financial managers

A: Market efficiency is the degree to which prices in the market show all available relevant data and…

Q: What information would be required to compute the risk-asset ratio under Basle I?

A: Basel I is the first of three sets of international banking rules. Basel one was shaped with the…

Q: state the WARREN BUFFETS INVESTMENT STRATEGY

A: Buffett follows and use the Benjamin Graham school of value investing, which seeks for stocks with…

Q: Define the term risk premium?

A: Market Risk Premium: The amount that remains after deducting the risk-free rate of return from the…

Q: Provide an example of an asset market that you think could be an economist's definition of market…

A: Asset market bubble happens when market prices in some sectors increase over time and traded for…

Q: Why companies offer two or more classes of voting shares? Is it in accordance to the best corporate…

A: A dual class stock refers to a scenario when a company issues two different classes of shares. It…

Q: Define the term Risk-Free-Interest Rate?

A: A risk-free interest rate is a rate of return on investment with the least risk or no risk. Since…

Q: Which of the following have the potential to ameliorate principal-agent conflicts?     A.…

A: Principal agent problem is the problem caused by agents pursuing their own interest rather than the…

Q: What are recommendations for a state owned company to implement corporate governance and a culture…

A: Below are the few recommendations for a state owned company to implement corporate governance and a…