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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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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


What is the relationship between risk and return in investment decisions?

The relationship between risk and return in investment decisions is that generally, higher returns are associated with higher levels of risk. Investors must weigh the potential for greater returns against the possibility of losing money when making investment decisions.


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


What is the Meaning of capm?

CAPM, or the Capital Asset Pricing Model, is a financial model used to determine the expected return on an investment based on its systematic risk, as measured by beta. It establishes a relationship between the expected return of an asset and its risk relative to the overall market. The formula is expressed as: Expected Return = Risk-Free Rate + Beta × (Market Return - Risk-Free Rate). CAPM helps investors assess the potential return of an investment while considering its risk in the context of market movements.

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