Causes of risks, Financial Management

Assignment Help:

Q. Causes of Risks

1) Wrong decision of what to invest in.

2) Wrong timing of investments.

3) Nature of instruments invested such as shares or bonds, chit funds, benefit funds are highly risky than bank deposits or P.O. Certificates etc. .

4) Creditworthiness of Issuer: Securities of government and semi government bodies are more Creditworthy than those issued by the corporate sector.

5) Maturity Period or Length of Investment: Longer the period, the more risky is the investment Normally.

6) Amount of Vestment: Higher the amount invested in any security the larger is the risk.

7) Method of investment, namely, secured by collateral or not.

8) Terms of lending such as periodicity of servicing, redemption periods etc.

9) Nature of industry or business in which the company is operating.

10) National and international factors, acts of god, etc.


Related Discussions:- Causes of risks

Explain the book building guidelines, Question 1 Describe the functions...

Question 1 Describe the functions of merchant banking and functions of financial intermediaries Question 2 What do you understand by book building and Green shoe option

Define decision to not permit price to ration goods, What reasons do govern...

What reasons do governments frequently give to justify the decision to not permit price to ration goods? (a) Price gouging is bad. (b) Income is unfairly distributed. (c) Some

Future value, Future V alue The value of an investment is based...

Future V alue The value of an investment is based on the rate of interest paid at set time periods and at some point in the future. Future values incorporate both the i

Need for credit and its nature, Need for Credit and its nature On the d...

Need for Credit and its nature On the demand side of the economy are the consumers of goods and services who require funds basically for acquiring certain consumer durables. Th

Compare and contrast sources of conflict, The data on sales performance in ...

The data on sales performance in LS Company has shown a important downward trend over the last year. The Marketing and Sales Department is blaming the Finance Department for the po

What are agency problems, What are agency problems? and between what two st...

What are agency problems? and between what two stakeholders do agency problem typically occur?

Determine rates that company enter into a $/£ currency swap, Suppose a comp...

Suppose a company is quoting swap rates as follows:  7.75 - 8.10 percent yearly against 6-month dollar LIBOR for dollars and 11.25 - 11.65 percent yearly against six-month dollar L

What is rationale and behind profitability maximisation, What is Rationale ...

What is Rationale and behind profitability maximisation Rationale & behind profitability maximisation, as a guide to financial decision making, is simple. Profit is a test of e

Share-based payments and retirement benefits, Applicant should have been we...

Applicant should have been well versed in the calculation of actuarial losses and gains on pensions. It would have been significant to ensure each item affecting liabilities and as

Management of Financial Institution, 1. Why do the banks borrow funds, besi...

1. Why do the banks borrow funds, besides accepting deposits? Discuss in detail the various sources from where banks can borrow funds within India.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd