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the risk that is inherent simply by engaging in business with a third party. Any relationship with a vendor is inherently risky-a supplier, for example, may not deliver its goods per the contract terms, thus leaving your company without the (potentially important) product. Assessing relationship risk is essential in managing your vendors, especially the ones that are key to your company's successful operation.
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What is the relationship between financial decision making and risk and return?
plz quote me the answer of the above question
What is a dominant portfolio?
Dominant Portfolio is part of the efficient frontier in modern porfolio theory. If a portfolio has a higher expected return than another portfolio with the same level of risk, a lower level of expected risk than another portfolio with equal expected return or a higher expected return and lower expected risk than the the portfolio is dominant.
In business what is the relationship between risk and profit?
The relationship between the two is that risk is needed to make a profit. A profit is money left over after expenses have been paid. To have expenses you need to take risks.
What is financial definition of ROC?
ROC stands for Return on Capital. (How much money a person would get from an investment after a certain amount of time)
How could the return on assets indicator provide relevant data on the profitability of a company?
The Return on Assets Indicator or ROA shows the relationship between a company's profits to its actual assets. It is a measure of the company's profitability.
Relationship between risk and return?
risk is pre-stage for return...
What is risk return relationship?
The risk return relationship is a business concept referring to the risk involved in exchange for the amount of return gained on an investment. These two factors are directly proportional to each other, meaning the more return sought, the higher the risk that is undertaken.
The risk-return relationship for each financial asset is shown on?
the security market line
When it comes to investing what is the usual relationship between risk and reward?
When it comes to investing, one general relationship between risk and reward is that taking more risk is associated with a greater return. However, in many cases there is no relationship between the two. For example, even though stocks tend to have a higher return than bonds, taking that risk does not guarantee a better return.
The risk return relationship for each financial asset is shown on?
the security market line
What is the relationship between financial decision making and risk and return Would all financial managers view risk-return trade-offs similarly?
return is a reward gained from investing or the reward from employing assets in a company. risk is the degree of uncertainty of possible return generated from an investment
The equilibrium risk-return relationship for a risk-averse individual shows what?
The equilibrium risk-return relationship describes the investment/saving decision of a person based on risk versus return. Generally, a rational person maximises their outcome such that the last unit cost of a little more risk is equal to the incremental return on an investment. Since the cost of risk is an expectation due to uncertainty, different individuals value risk at different levels. A risk-adverse individual will choose a lower equilibrium value of investment/saving because their expected incremental costs from risk are higher than a less risk-adverse person.
What is the relationship between financial decision making and risk and return?
plz quote me the answer of the above question
Why CML is a special case of SML?
CML a special case of SML. While CML represents Return potential and risk involved in all financial asset across the Capital market, SML is the linear relationship between the expected return of security and its systematic risk, the expected return comparing a risk-free return plus a risk premium.
What are some questions that corporate strategists must answer?
The risk-return relationship for each financial asset is shown on
How do you calculate risk - free return?
Risk free rate of return or risk free return is calculated as the return on government securities of the same maturity.
Basic concept of risk and return?
The higher the risk, the higher the return.
