When it comes to investment performance, what statistical notion do many portfolio managers employ to reflect risk

Q: How do banks assess the risk appetite of each customer in terms of choosing the right investment?

A: Risk appetite is the ability to absorb or undertake a level of investment risk by the investor. This…

Q: Explain what is the risk component of financial assets.

A: Risk can be described as the likelihood of an unexpected or negative outcome. Any act or activity…

Q: Describe the difference between business risk and financial risk using appropriate example

A: Business risk refers to the potential for a company to experience a loss or lower profits due to…

Q: What is financial risk? How is it related to business risk?

A: The financial risk is the risk which is related to the non-payment of the fixed financial charges.…

Q: e market is efficient, what is the role of an active portfolio manager? would active portfolio…

A: ACTIVE PORTFOLIO MANAGEMENT: Active management (also known as active investing) is a portfolio…

Q: What is forecasting risk? Why is it a concern for the financial manager?

A: A financial manager can be considered a professional with the responsibility of overseeing the…

Q: How do financial institutions help individuals diversify their portfolio risk? In your opinion which…

A: We have to explain how financial institutions help individuals diversify their portfolio risk.…

Q: o risk premiums influence financial decisions regarding risk and re

A: Step 1 A risk premium is an investment return that is expected to generate more than the level of a…

Q: What is the causes of the financial risk?

A: financial risk - financial risk is the possible danger of losing money from an investment made by…

Q: Describe its significance along with the characteristics that determine the quality of a market?

A: A financial market is a market where people buy or sell financial securities at a low transaction…

Q: financia

A: The payout policy and the investment policy both are related to the dividend payout, and both are…

Q: Why should age, income, nearness to goal, risk tolerance, and existing assets be considered when…

A: Introduction : Asset portfolio refers to the group of stocks and securities that are managed and…

Q: Using examples, explain how firms are affected by both systematic and firm-specific risk. What is…

A: There are two types of risk systemic risk and firm specific risk.

Q: Define the term exposure to financial risk?

A: The question is based on the concept of Financial risk and its exposure.

Q: How do investors reduce investment risk by asset allocation and diversification?

A: Investment risk is a risk of potential financial loss built into the investment. For example:…

Q: How behavorial bias affect investment behavior?

A: Behavioral bias is the belief by the investors that unknowingly affects the investors investment…

Q: What methods could be used in profit planning?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What is Competitiveness and how it affects financial market. Identify the risks that may arise.

A: The search for long-term competitive advantage is an important part of all business activity – one…

Q: How do you turn an income statement int a forecasted return? And how is it helpful?

A: Return means earn additional on invested amount. Return is a positive factor in every investment.…

Q: Explain the Contrarian Investing Strategy?

A: An investment strategy is a procedure to select the best investment portfolio that gives the maximum…

Q: b. Discuss why financial analysts prefer the CAPM model over other evaluation models?

A: CAPM is an abbreviation used for Capital Asset Pricing model which is used by investors or portfolio…

Q: What theories can define the relationship between financial literacy and investment decision?

A: Behavioral finance is the study of the influence of external factors and the psychology on the…

Q: Suggest what is the best financial instrument to offset market risk exposure and from market…

A: The question is based on the concept of hedging the market risk and volatility by use of a proper…

Q: Why do an investor need to know and understand Portfolio Management and how do they handle their…

A: Portfolio management is the process of selecting, prioritizing, and controlling an organization's…

Q: Describe the SML in words.  What is it saying about how investors form required rates of return?…

A: This question talks about Security Market Line (SML) and its implications on.Security Market Line is…

Q: Define and explain the agency problem in terms of differences in ability to diversify risk by…

A: Agency problem occurs when there is a conflict of interest when manager is in dilemma to serve the…

Q: Discuss the importance of hedging to the financial risk manager Are there any downside to hedging?

A: Hedging in money alludes to ensuring speculations. Support is a speculation status, which targets…

Q: etect and Identify the behavioural biases investor exhibits in investment decision making.

A: Investment choice It refers to how a business's finances are to be invested in various assets so…

Q: What are some limitations of financial performance measures?

A:

Q: Why is TIME the portfolio manager’s best friend?

A: Portfolio manager: Portfolio managers are specialists that manage investment portfolios in order to…