some

Q: Risk management focuses on what?

A: Organizations assess the stakeholder’s responses as risks or opportunities which would affect the…

Q: What is Competitive Advantage b. What is Competitive Disadvantage c. What is Risk Management and…

A: "Since you have posted multiple questions, we will solve first question for you. If you want any…

Q: Discuss how diversification reduces firm specific risk.

A: Diversification is investing money in many investments rather than a single investment. In…

Q: Explain the difference between risk and uncertainty in the context of investment appraisal, and…

A: Investment means engaging your funds to generate income for the future. Return from the investment…

Q: Define the term investment pool?

A: Answer: Investment pools are noting but an institutional entities that are pooled investment…

Q: Leverage and its use in financial decision making.

A: Leverage analysis means arrangement of fixed assets in such a form or way that future fixed return…

Q: Is the WACC set by investors or by managers and how (with theoretical concepts)?  Please provide…

A: The Weighted average cost of capital (WACC), which includes common stock, preferred stock, bonds,…

Q: In pursuing one’s investment objective, which is specified in terms of return requirement and risk…

A: Investment is an activity that is engaged in by people who have savings. It can be in two forms such…

Q: What does it mean that portfolio diversification can reduce risk, and how does the efficient…

A: Risk is the measurable probability of loss on an investment. It includes the possibility of losing…

Q: Describe relationship between risk and profitability.

A: Risk and profitability have direct relation. Lower the risk, lower is the return and Higher the…

Q: In order to determine whether an investment is visible, what factors should be considered?

A: For the evaluation of a task, no fixed steps that have to be taken. Numerous things should be…

Q: What is the purpose of NPV analysis? Be sure to discuss the concepts of risk and return in your

A: Net present value NPV is used quite extensively in capital budgeting decisions whether to accept or…

Q: Provide and fully explain any 2 reasons why it is particularly difficult to determine the value of…

A: Two Reasons for difficulty in Valuation of IT Company are as follows :-  Reason #1 – Intangible…

Q: Explain the difference between financial risk andbusiness risk.

A: Risk is referred as the chance of loss. An activity which leads to loss is termed as risk. The risk…

Q: Why does the advantage of Portfolio analysis is commonly used in strategy formulation is stimulates…

A: The combination of various financial assets and securities in which an individual invests his or her…

Q: Explain the concept of risk management

A: Introduction: Risk can be characterized in terms of the uncertainty of future consequences resulting…

Q: aving a trading system is important? And why managing our

A: Trading system is very important for growth and development of economy and growth of financial…

Q: why do we need to quantify the investment risk and returns?

A: Almost all investments possess certain risks and return.

Q: Is the technical or fundamental analysis a more effective strategy and why?

A: Technical analysis and fundamental analysis are two popular methods used in finance for investment…

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.