Illustrations of business risk measurement

Reference no: EM13821270

This will be a real challenge, but it should be an interesting challenge. Much of the way we measure risk relies on probability distribution (the bell curve as shown on page 425). For many things in life, and business, this is perfectly valid, but for others it is not. Can you come up with some illustrations of business risk measurement where bell curve type analysis is inappropriate? This will take a little research on the Internet. Why may the bell curve be an inappropriate tool for looking at market risk? Find out what Mandelbrot (The Mis Behvior of Markets) and Taleb (The Black Swan) have to say.

Reference no: EM13821270

Questions Cloud

What are the capabilities and limitations of intelligence : What are the capabilities and limitations of intelligence in supporting homeland security efforts

Capital budgeting and dividend policy : Examine two very important topics in Finance this week. Capital Budgeting and Dividend Policy.

What have you learned from your fellow students : What have you learned from your fellow students by discussing the various topics in this course? Which one assignment in this course did you find most applicable to your career goals and why?

Individual assignment defining marketing : Individual Assignment Defining Marketing

Illustrations of business risk measurement : Can you come up with some illustrations of business risk measurement where bell curve type analysis is inappropriate? This will take a little research on the Internet. Why may the bell curve be an inappropriate tool for looking at market risk? Fi..

Explain the four functions of political parties : Explain the four functions of political parties and provide examples of each. Which function do you believe to be most important, and why

Suppose ben must borrow the money : What initial salary would Ben need to receive to make him indifferent between attending Wilton University and staying in his current position? Suppose Ben must borrow the money. The current borrowing rate is 5.4%. How would this affect his decision..

Write an essay about humanities ethics of friendships : Write an essay about Humanities ethics of friendships. please share your perspective on whether or not you believe Aristotle's three levels of friendship still apply today.

Evaluate the positthe current health care delivery structure : Analyze the current health care delivery structure in your state. Compare and contrast the major determinants of healthcare market power.

User Account

All Pages