Essay Available:
Pages:
1 pages/≈275 words
Sources:
1
Style:
APA
Subject:
Business & Marketing
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 4.32
Topic:
FMA-VI 2 of 2: Measures of risk and its relation to business models
Essay Instructions:
Measures of Risk.
Address each source of risk that is measured and relate it to two models addressed in this unit.
Your response should be at least 250 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
Course Textbook
Lasher, W. R. (2011). Practical financial management (6th ed.). Mason, OH: South-Western.
 Chapter 9
Essay Sample Content Preview:
Measures of risk and its relation to business models
Name
Institution:
Date:
Risk in business is a term given to the unforeseen circumstances that may have a negative impact on the operation and success of a company. It can result from internal factors as well as some external factors in the business community. Even though negative, it’s inherent to performance. As risk is uncertain, it is prudent to learn tools of measuring risk and managing it.
Models of measuring risk give different results. Standard deviation is a model that is based on the volatility of returns. More diverse investments pose a high risk. Different deviations though give an increasing level of reliability. For instance, if the standard deviation of a stock is 21% with an annual return of 8%. You could expect an 8% percent return in this year and in any other year it could be anywhere bet...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now: