Reference no: EM131354869
Discussion - Balancing Risk and Return
"Only those who will risk going too far can possibly find out how far one can go." T. S. Eliot
"Risk comes from not knowing what you're doing." Warren Buffett
Risk Managers (RM) can add tremendous value to a company's profile. Consider the many types of risk such as Market, Interest Rate, Inflation, Credit, and Liquidity Risk. The RM can identify and plan toward a balanced future.
How much diversification can help? The best performing assets should offset the worst performing ones. Is this true in most businesses? Consider investment portfolios, hardware store inventory, restaurant menu items, and even political platforms.
Can the risk of an unpopular position, precarious investment, or unsupported decision be worth the return?
|
When project npv exceeds zero
: When a project's NPV exceeds zero, the project will always be accepted when payback period method is used. the IRR should be calculated to insure that the project's projected rate of return exceeds the cost of capital.
|
|
Explain the probabilistic structure of a wiener process
: Explain how a Brownian motion process can be changed into a second-order stationary process by a transformation of the index.
|
|
At which site should subway open the new restaurant
: Subway, with more than 25,000 outlets in the U.S., is planning for a new restaurant in Buffalo, New York. Three locations are being considered. At which site should Subway open the new restaurant
|
|
Explain probabilistic structure of a gaussian markov process
: Explain how a Gaussian, Markov stationary process can give rise to an AR(1) model.
|
|
How much diversification can help
: How much diversification can help? The best performing assets should offset the worst performing ones. Is this true in most businesses? Consider investment portfolios, hardware store inventory, restaurant menu items, and even political platforms.
|
|
Explain the probabilistic structure of a martingale process
: Explain the probabilistic structure of a martingale process.
|
|
Does the cost increase with more traveling
: For example how would an increase/decrease in ticket prices affect the financial picture? Does the cost increase with more traveling? How long might the circus stay in one city before the cost of feed, salaries, etc. did not keep up with the box o..
|
|
Courts discussion of covenant of good faith and fair dealing
: Explain the distinction between the court's discussion of the covenant of good faith and fair dealing and the possibility of an implied contract term.
|
|
Explain potential predisposing genetic-environmental factors
: After completing this week's Clinical Experience, reflect on a patient with a known history of a cardiovascular disorder such as a blood clot or arrhythmia. Describe the patient's personal and medical history, drug therapy and treatments, and foll..
|