Risk is the chance or probability of occurring a loss.It is the potential for uncontrolled loss of something of value.
Risk can be classified into Business risk and Financial risk.
Difference
Business risk | financial risk |
|
|
|
|
|
|
|
|
|
|
|
|
Factors affecting Business risk :
Factors affecting Financial risk :
What is the difference between business risk and financial risk? Explain some of the factors that...
Tom is interested in gaining additional insights into capital structure issues and has asked Walt to brief him in the area. He wants a basic review of the terminology but is particularly interested in the impact of different types of risk and in understanding of the better-known financial theorists. Walt knew that Tom could grasp complex issues quickly and felt that a thorough discussion of Modigliani and Miller’s work would be appropriate. He also felt that Miller’s addition of personal...
Identify and discuss the financial factors that expose the business to country risk. Identify and discuss the political factors that expose the business to country risk (in Italy).
Explain the difference between unique risk and market risk Explain what diversification is; can you diversify unique risk, market risk, or both? Is standard deviation a measure of total or relative risk? The capital asset pricing model has a parameter called beta, explain what beta measures. Is it true that higher asset volatility should imply higher returns? The S&P 500 is a very diversified portfolio, if diversification helps lower risk, why is it that it fell by around 40% during...
Why do banks innovate and maintain an appetite for risk and what some of the factors that contribute to the innovation process response should be no less than 350 words and it should have references and citations.
1. Explain what is meant by business risk and financial risk. Suppose Firm A has greater business risk than Firm B. Is it true that Firm A also has a higher cost of equity capital? Explain. 2. Is there an easily identifiable debt-equity ratio that will maximize the value of a firm? Why or why not?
Define tangible evidence and testimonial evidence. What is the difference between the two? What factors are used to evaluate tangible evidence? What factors are used to evaluate testimonial evidence?
Explain the difference between an emissions trading scheme and a carbon tax. What are some of the benefits and limitations of each? Explain the difference between an emissions trading scheme and a carbon tax. What are some of the benefits and limitations of each?
Heeelp! What factors contribute to some communities being defined as at-risk? Discuss the areas of advocacy that could be undertaken by social workers who practice in at risk communities. Make sure to talk about both case (micro) and cause (macro) advocacy strategies.
Briefly explain the transmission of tuberculosis. Discuss some of the risk factors for acquiring this disease as well as the social implications for infected individuals. Given the risk factors mentioned above, what area(s) of prevention would you focus on if you were to start a public health campaign designed at halting the spread of tuberculosis? Please explain your reasoning in less than two paragraphs.
Briefly explain the transmission of malaria. Discuss some of the risk factors for acquiring this disease as well as the social implications for infected individuals. Given the risk factors mentioned above, what area(s) of prevention would you focus on if you were to start a public health campaign designed at reducing the incidence of malaria cases? Please explain your reasoning in less than two paragraphs.