Q: what is risk and return in the context of financial decision making?
A: Risk and return are two very important concept used in any financial decision making. Two financial…
Q: What is investment timing option?
A: Option with reference to investment or project refers a significant option that can affect the…
Q: If markets are efficient, an investor's best investment strategy involves the correct choice of
A: This is multiple choice question, in this we explained that if Market is efficient then what's the…
Q: What does a failed net-investment test indicate?
A: Answer: Net investment test: The company will not overdraw at any stage on its return, and is thus…
Q: How do an investment's required rate of return vary with perceived risk? Explain with an example?
A: Required rate of return refers to the rate which the investors expects from their investments. This…
Q: How does an investment appraisal technique help companies move in the right direction regarding an…
A: Investment evaluation is significant for brokers since it is a type of principal examination and,…
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: What is the capital asset pricing model (CAPM)? What does it tell us about the required return on a…
A: The required rate of return of a security is the minimum return an investor will demand from the…
Q: Explain the difference between risk and uncertainty in the context of investment appraisal, and…
A: Investment means engaging your funds to generate income for the future. Return from the investment…
Q: Which variables are to consider before making an investment decision? Describe about them.
A: Investment: It refers to the process of using the currently held excess cash to earn profitable…
Q: What is an investment center manager's advise if the firm intends to adopt the return on investment…
A: This question explains about an investment center manager's advise if the firm intends to adopt the…
Q: why is a need for investor to evaluate the investment ?
A: All investments will have a certain percentage of risk. To control the future risks in the…
Q: What is the y risk-free investment?
A: Risk-free rate of return is the rate of return that an investor expects from an investment in any…
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: 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 is financial risk?
A: Risk refers to the undesired consequences arises due to the uncertainty. In other words, risk refers…
Q: How behavorial bias affect investment behavior?
A: Behavioral bias is the belief by the investors that unknowingly affects the investors investment…
Q: Explain the investment pool?
A: Investment Pool: Investment Pool is the joint funds that is planned financial arrangements for a…
Q: Factors affecting investment decisions
A: Introduction: The Investment decision is the decision taken by shareholders or top-level management…
Q: What kind of investment is considered to be risk-free?
A: A risk-free investment is an investment that has a minimum or no fluctuation from the expected…
Q: How the risk and return trade-off can be applied in real life?
A: The risk-return tradeoff states that the return rises with an increase in risk. Investors use this…
Q: why is a risk analysis important to the capital investment decision making process?
A: Risk is the uncertainty or possibility of loss due to the decision in investment process. Of all the…
Q: What are the issues that a finance manager considers in taking investment decision?
A: The term investment decision refers to the decisions that are related to how the funds of the…
Q: which investment is preferable?
A: The present value is the present worth of the amount that will be paid or received at present.
Q: When is the financial risk by far the most critical element to consider?
A: Introduction: Risk can be characterized in terms of the uncertainty of future consequences resulting…
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: How does the capital asset pricing model (CAPM) influence financial decisions regarding risk and…
A: CAPM is related to the connection between the securities and their expected returns. CAPM is…
Q: Explain if the operational risk is considered a risk or uncertainty? Why? If it is a risk, how can…
A: Operational Loss: The risk involved in failures of Man, Machine, Material, and Methods during…
Q: Comment on the use of probability in investment decision process.
A: Use of probability is a very important tool when it comes to making decisions with regards to…
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 investment strategy?
A: Investment strategies are generally used by the investors in order to protect themselves from any…
Q: Explain the difference between financial risk andbusiness risk.
A: Risk is referred as the chance of loss. An activity which leads to loss is termed as risk. The risk…
Q: Why should both quantitative and qualitative factors be considered in capital investment decisions?
A: The Investment commitment on any project is based on many factors which are classified as…
Q: When comparing the performance of two investment alternatives, which characteristics of investments…
A: For comparison any investment alternative main thing required for Cashflow and certainty of cash and…
Q: biases seriously affect investor's analysis and investment decisions? How
A: Behavioural biases are nothing but irrational behaviour or beliefs that can subconsciously affect…
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 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: What does “investment risk” mean?
A: Risk is referred as uncertainty or loss. Financial risk is referred as the variability of actual…
Q: Why are statistical approaches and tools important in investment decision-making?
A: This question explains about the statistical approaches and tools that are important in investment…
Q: What are investment activities? Give some examples?
A: Statement of cash flow: It refers to a financial statement that shows all the cash payments and…
- What is risk, and how does it affect decisions about investment?
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