what is risk and return in the context of financial decision making?

Q: Distinguish between different kinds of risk and the steps involved in the financial risk management…

A: The financial risk management process is the process that describes the framework for the…

Q: What is the use and purpose of Financial Performance Measures and Non-financial Performance…

A: Although financial indicators are vital for performance evaluation, many businesses utilize a…

Q: What advantages does the forecasted financial statement method have over theAFN equation for…

A: Answer: AFN stands for “Additional funds needed” which is used to measure the amount of external…

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: What are the risks of investing in an ESOP?

A: ESOP stands for Employee Stock Ownership Plan. It is a plan that gives an ownership interest in the…

Q: question is related to FINANCIAL RISK MANAGEMENT

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What are the benefits and corresponding risks of Financial Investment?

A: Financial Investments are investments that are made with the expectation to receive future financial…

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: Which is risk in the context of financial decision making and performance? Does performance…

A: Risk in the perspective of financial decision making and performance differs as the company faces…

Q: Explain the importance of perspective analysis to financial statement analysis?

A: The process of evaluating a company's performance or value using its balance sheet, income…

Q: What is withdrawal risk?

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: What are objectives of financial management

A: Financial management is referred to as the strategic planning, organizing, directing, and also…

Q: Define the term exposure to financial risk?

A: The question is based on the concept of Financial risk and its exposure.

Q: What methods could be used in profit planning?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What is risk, and how does it affect decisions about investment?

A: Risk and return are related to each other while making investment.

Q: What is/are the importance of identifying the gaps to make financial projection feasible?

A: A gap analysis is a method for comparing present performance to desired, expected performance. This…

Q: How would you describe the two most important questions that financial managers must address before…

A: The primary concern of financial management is the correct administration of funds. The finance…

Q: What is the difference between business risk and financial risk?

A: Risk Analysis: The risk analysis is defined as the process of recognizing the potential problems…

Q: a) What is the general characteristics of Risk Financing – Risk Retention Methods

A: Hi, Thanks for the Question, Since you asked multiple questions, we will answer first question for…

Q: What are the basic risks faced by financial intermediaries? Discuss each thoroughly.

A: In financial terms, risk is defined as the possibility that the actual gains from an outcome or…

Q: What is the significance of Financial Management? What are the advantages and disadvantages of…

A: Financial management: It is the process of organizing, collecting, managing, and distributing funds…

Q: What role does the pro forma balance sheet play in financial forecasting

A: A pro forma balance sheets, are used to project how a company will manage its assets in the future.…

Q: Explain the difference between deterministic and probabilistic financial planning models.

A:

Q: What is the relationship of risk to the investment?

A: There is a direct relationship between risk and return in investment decision making. It means…

Q: What is risk? Why must risk as well as return be considered by the financial manager who is…

A: Risk is associated with every business it is one of the important functions of the management to…

Q: What is the risk in the context of financial decision making and performance?

A: Financial decision making: Financial decision making denotes to decision making concerning financial…

Q: why financial planning is a long-term process rather than short term one?

A: Financial planning is very long term process and it can not be done on the basis of short term.

Q: What is a financial risk management certificate?

A: Financial risk management course refers to the professional qualification which focus provides the…

Q: How does the risk return trade-off relate to the financial manager's main goal?

A: The main goal for a financial manager is to generate the maximum value of the firm to its owners.…

Q: What is sound financial management

A: Finance is referred as the study of the assets as well as funds. It intertwined but does not same…

Q: discuss the importance of considering risk when analyzing investments?

A: Risk refers to the probability of uncertainties about future .Risk may also be termed as volatility…

Q: How We use quantitative data to manage risk and create investment vehicles

A: We can define risk as the variations in return. While investing in a security, it is very important…

Q: What is the key output of a financial plan?

A: A financial plan refers to the broader evaluation of an individual current and financial future…

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: What are the implications of behavioral finance?

A: Behavioral finance is a study which combines the psychological, social and traditional factors. It…

Q: Answer the following questions: a) How do you handle financial risk?

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: How are financing costs and dividends considered in Scenario Analysis?

A: Net present value (NPV) is computed by subtracting present value of cash outflows from the present…

Q: What is the difference between future value and present value? Which approach is generally preferred…

A: Present value and future value are considered while taking investment decisions. The future values…

Q: Illustrate how risk related to investment

A: There is a direct relationship between risk and return in investment decision making. It means…

Q: What is financial risk?

A: Risk means the type of danger. Financial risk refers to the situation of losing money on an…

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: Which are functions of financial markets? Check all that apply: O Maturity intermediation Risk…

A: Financial markets are important in the economy of country and they play very bigger role in the…

Q: How to deal with financial risk

A: Financial risk is always present in business situations but one thing we can do it that we can…

Q: Why must financial analysis be related to a specific objective?

A: Financial Analysis: The use of a business entity's financial statements in order to assess its…

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.