What does it mean to “manage” risk? Should itsstockholders want a firm to “manage” all of therisks it faces?

Q: What are the risk factors in a risk management about the wiredcards Ag's Scandal?

A: The wiredcards  Ag's Scandal was biggest scandal in the fintech industry once was biggest innovator…

Q: What is meant by the term ‘financial distress’. If we assume that financial distress exists, explain…

A: Financial obligations are liabilities of an entity towards outsiders such as suppliers, vendors,…

Q: What is financial risk? How is it related to business risk?

A: The financial risk is the risk which is related to the non-payment of the fixed financial charges.…

Q: Is it reasonable to ignore IDIOSYNCRATIC RISK and care only about MARKET (SYSTEMIC) risk? What about…

A: Definitions  Idiosyncratic risk : In simple words, idiosyncratic risk can be understood as the risk…

Q: What do you see as some of the possible problems if shareholder value is seen as a strategy (and not…

A: Strategy refers to the financial approach for the planning of the functions that are based on a…

Q: In theory, market risk should be the only “relevant” risk. However, companies focus asmuch on…

A: Stand-alone risk: Stand-alone risk is the risk related with the anticipated project cash flow. The…

Q: If only some investors perform security analysis while all others hold the market portfolio, would…

A: The Capital Market Line (CML) is a subset of the CAL, which is the line that depicts an investor's…

Q: What are the real risks of an adverse financial outcome, especially in the short run?

A: Risk is the important factor of investment decisions to explain the capability of an investor to…

Q: What is financial risk, and how does it arise?

A: Answer: Usually, financial risk refers to a situation where a company is not able to pay its fixed…

Q: How can an unlevered firm uptain financial leverage

A: Unlevered firm is a firm with no debt in its capital structure. It does not have any financial…

Q: Why does business risk vary from industry to industry?

A: Business risk It is the probability of occurrence of an inadequate amount of loss because of…

Q: Which failures in risk management systems have had catastrophic consequences in financial markets?…

A: The risk management executives have acquired expanded consideration and interest as of late, both…

Q: Using examples, explain how firms are affected by both systematic and firm-specific risk. What is…

A: There are two types of risk systemic risk and firm specific risk.

Q: Does greater risk imply a bad investment?

A: Risk assessment is the process for identifying and assessing risks associated with achieving your…

Q: capital controls, which investment would you choose? What are the risks associated with this trade?

A: The United States has always been ranked among the best in the world for its competitiveness and…

Q: What information is considered a necessary evil in constructing an investment policy statement?

A: Provide appropriate guidance on portfolio construction and management Maintain focus on the…

Q: How do companies manage risk? What are the factors that contribute to a high-risk project?

A: In business there must be ups and downs in their business surroundings.  In every business there…

Q: Explain the following statement: “The stand-alone risk of anindividual corporate project may be…

A: Answer: When we look into the individual corporate project’s standalone risk, we can talk only about…

Q: How might you mitigate the risks that are mentioned? Market, Liquidity, and Operational.

A: Businesses face various types of risks that affect survival and growth of the company. Risks that a…

Q: how a firm might use a hedging to reduce risk in its business? please include examples

A: Hedging is an important tool in finance. A firm or a company often makes use of hedging to reduce…

Q: What is business risk? What factors influence afirm’s business risk?

A: Introduction: Risk can be characterised in terms of the uncertainty of future consequences resulting…

Q: What are some defensive tactics that firms can use to resist hostile takeovers?

A: A hostile takeover comes around when one company, the obtaining company, tries to require over…

Q: In theory, should a firm be equally concerned with stand-alone,corporate, and market risk? Would…

A: Introduction: Risk can be characterised in terms of the uncertainty of future consequences resulting…

Q: TRUE OR FALSE Financial sector creates products for the management of risk, thus risk can be…

A: Risk management is the process of identifying, analyzing, and accepting or mitigating uncertainty in…

Q: Implications of the business risk approach?

A: Business risk is the exposure a company or organization has to factor(s) that will lower its profits…

Q: Why the limitation of portfilio analysis is it naively following the prescriptions of a portfolio…

A: In general, small businesses will offer only one product or service. But as the expansion of…

Q: Which of the following statements is false?

A: Management should consider the needs of the bondholder because if they don't, they could end up…

Q: portant topic that usually only economists observe.

A: Basically, risk the executives happens when an investor or fund manager investigates and endeavors…

Q: What factors contribute to the risk of overusing financial leverage?

A: Financial leverage is the use of debt in the capital structure to acquire additional assets. Use of…

Q: what are the benefit to the financial institution and their consumers of measuring or mitigating…

A: A strategy for planning for and decreasing the impact of hazards on an organisation is risk…

Q: Why use a business risk approach?

A: Business risk is generally identified by the Auditor. By reviewing the financial statements Auditor…

Q: Why would management want to increase the riskiness of the firm?Why would this make bondholders…

A: When equity is considered as an option on the firm value which has a strike price capable with the…

Q: Why is it reasonable to ignore diversifiable risk and care only about nondiversififiable risk? What…

A: Diversifiable risk is that risk that can be easily diversified by making the investment into…

Q: What type of security can be used to minimize both price risk and reinvestment riskfor an investor…

A: The term price risk refers to the increase or decrease in the price of the bonds as a result of…

Q: In theory, market risk should be the only “relevant” risk. However, companies focus as much on…

A: Market Risk is the risk that may create a loss on the financial assets or investments due to…

Q: what happens if a company doesn't manage risk ?

A: Risk management is important part of carrying the business activities. There are different types of…

Q: Why is there a need to manage risk in financial institutions?

A: A financial institution (FI) is a firm that specializes in financial activities, including deposits,…

Q: What are some determinants of business risk?

A: Business risk is referred as the exposure of risk factors towards a company or a business which…

Q: What is hedging and how is it different from diversification? If a firm needs to manage its risk,…

A: A hedge is an investment that is made fully intent on diminishing the danger of unfriendly value…

Q: How does risk management affect a company’s ability to finance its projects?

A: Risk is associated with every business; there are some risks which are controllable by the…

Q: Suggest what is the best financial instrument to offset market risk exposure and from market…

A: Derivatives are considered as the best financial instruments to offset the exposure of market risk…