0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What is a solvency ratio used for?
A solvency ratio measures a insurers risk of claims it cannot absorb. Basically it is its capital relative to premiums written. One could say it shows that the insurer could cover all its policies.
How is financial information system used?
The evaluation of financial data may be performed through ratio analysis, trend evaluation, and financial planning modeling. Financial planning and forecasting are facilitated if used in conjunction with a Decision Support System (DSS).
Distinguish between systematic and unsystematic risks?
It is the risk which is due to the factors which are beyond the control of the people working in the market and that's why risk free rate of return in used to just compensate this type of risk in market. This is the risk other than systematic risk and which is due to the factors which are controllable by the people working in market and market risk premium is used to compensate this type of risk. Total Risk = Systematic risk + Unsystematic Risk
What is the meaning of Financial Prowess and what context it is used?
Very knowledgeable, financially, as in a Financial Advisor has much.
Do those wishing to assume low risk tend to invest in a long term or short term investment?
That depends on the financial tools you use, take shares for an example, they seem to be very risky in the short term, in the long term, however, they almost always give you a reasonable yield. On the other hand, financial tools such as options and futures are used by even highly risk-averse investors in order to hedge the risks, and such investments are usually short-term in nature.
When is value at risk mostly used?
Value at risk or VaR is most often used in regard to financial mathematics and measuring financial assets and is used mostly in the calculation of finances.
The risk-free rate of return used to determine a firm's cost of capital will not vary depending upon the financial and operating risk level of the firm?
That is NOT true.
Does at risk require a hyphen?
Only if used as an adjective, e.g.: "We'll fund your coup provided it doesn't put our assets at risk." "Mechanisms for protecting at-risk children must be improved." Or to put it another way, only hyphenate the two words if they appear before the thing that's at risk (or alternatively the at-risk thing).
What resource or technique or tool can you use to help identify hazards on the job?
The resource used to identify hazards on the job is risk management. Risk management allows an employee to be aware of any safety hazard in the workplace to avoid injury.
What is Risk based internal audit?
Risk based audit is an approach used in auditing to determine what areas in a business have a high risk of causing misstatements in the financial report. This method is also used to know what auditing procedures should be used in order to have an efficient and effective financial outcome.
Give 2 defense mechanisms used by octopi?
1. Ink jet dispersed into the water as it flees. 2. Changing the color and texture of their skin to blend in with their surroundings to avoid predators.
What did you mean by?
'Hedge' means to avoid making a definite statement or decision. In Business, it is used in a broader sense i.e. to avoid making decisions involving financial risks to the persona or the business organization.
Where are ratchet mechanisms used?
Ratchet mechanisms used in Gas power plant for Gas Turbine. (like Barring gear in steam turbine).
What is Define clearing house?
A clearing house is a financial institution or organization that facilitates the settlement of financial transactions between parties. It acts as an intermediary, ensuring that trades are completed smoothly and efficiently by managing counterparty risk and guaranteeing the fulfillment of transactions. Clearing houses are commonly used in stock exchanges, derivative markets, and other financial markets to reduce the risk of default.
What did you mean by hedge?
'Hedge' means to avoid making a definite statement or decision. In Business, it is used in a broader sense i.e. to avoid making decisions involving financial risks to the persona or the business organization.
What is value at risk apporach?
Value at Risk is a term used in financial modeling and risk analysis. VaR describes the maximum loss not exceeded within a specified confidence limit. There's much more information and an Excel spreadsheet at the related link below
What is value at risk?
Value at Risk is a risk measure used by financial analysists. It describes your potential loss at a given confidence level. Specifically, at a 99% confidence level, your value at risk is your minimum expected loss over 1% of the trading days. See the related link for a detailed discussion, and an Excel spreadsheet to calculate Value at Risk
