answersLogoWhite

0

Risk variation can be examined by analyzing the negative correlation between risk and return. When you say risk variation I am assuming that you are referring to the diversification of risk, or otherwise stated, the accumulation of various instruments which involve different (varrying) risk. The main advantage to diversification is overall risk reduction through decreasing volatility of any particular risk. Example: If your unemployed and looking for a job you would apply to multiple places rather than just one because applying to many jobs (rather than just one) reduces the risk that you will continue to stay unemployed.

User Avatar

Wiki User

15y ago

What else can I help you with?

Related Questions

What are the advantages of risks?

Risk variation can be examined by analyzing the negative correlation between risk and return. When you say risk variation I am assuming that you are referring to the diversification of risk, or otherwise stated, the accumulation of various instruments which involve different (varrying) risk. The main advantage to diversification is overall risk reduction through decreasing volatility of any particular risk. Example: If your unemployed and looking for a job you would apply to multiple places rather than just one because applying to many jobs (rather than just one) reduces the risk that you will continue to stay unemployed.


What are the advantage and disadvantage of risk transfer?

advantages of risk transfer


What are the advantages of project risk management?

reduce risk of accidents


What are advantages of risk avoidance?

what is advantange risk avoidance


What are the advantages of statistical process control?

It detects the presence of special causes of variation.


Which procedure can not be used to increase genetic variation?

If a population dwindles, there is low genetic variation and a species may risk extinction.


What are the advantages of reinvestment rate risk over interest rate risk?

B


If the standard deviation is zero does that mean it's risk free?

No, it doesn't mean it is risk free; it only means there is no variation.


What are the advantages radar cross section?

It is used to detect planes in a wide variation of ranges


Advantages Cost and Risk of Database Approach?

The advantages of Cost and Risk Database Approach include being personalized and specialized. It also involves conversion costs and management cost.


What are the advantages and disadvantages of risk?

Nuna Yo Dayum Biznezz


What are the advantages and risk for daewoo in expansion in central Europe?

what do you think of daewoo's expansion into europe? what are the advantages and risks for the compan