Why is it important to diversify risk when doing investments

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Questions

1. Why is it important to diversify risk when doing investments? Give opinion.

2. What information can be obtained when calculating the standard deviation?

3. The past four monthly returns for Stace Company are 2.85%, -1.20%, 4.25%, and 0.89%. What is the average monthly return?

4. Give descriptions of 5 risk identification techniques and give an opinion on how each technique may be used in risk management.

5. What are the 7 steps of the risk management process?

Reference no: EM133379347

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