Which of the following is NOT a diversifiable risk?A) the risk that oil prices rise, increasing production costsB) the risk that the CEO is killed in a plane crashC) the risk of a key employee being hired away by a competitorD) the risk of a product liability lawsuit

Q: Explain with an example of how a healthy company might not have a spectacular ROE because there is…

A: Return in Equity or R.O.E. Return on equity refers to as the percentage of return, a company is…

Q: Explain the problems of adverse selection and moral hazard caused by asymmetric information. How can…

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Q: What are the risk factors in a risk management about the wiredcards Ag's Scandal?

A: The wiredcards  Ag's Scandal was biggest scandal in the fintech industry once was biggest innovator…

Q: The stock price of BAC is currently $120 and a put option with strike price of $120 is $5. A trader…

A: Here,Current price is $120Strike price is $120Premium is $5Strategies:-1. 300 Shares of BAC2. 3…

Q: you

A: Financial hardships Financial hardship refers to a situation in which a company cannot make payments…

Q: Purchasing Power Risk is A) the risk of bad business strategy or management decisions being made B)…

A: Purchasing Power Risk is a risk that could cause a possible loss to an investment you made or income…

Q: What is (a) unsystematic risk (company-unique or diversifiable risk) and (b) systematic risk market…

A: The risks are of two types, systematic and unsystematic risk. Systematic risk is tied to the market…

Q: What are some of the risks an investor would face when investing in a stock? In addition to the…

A: Explanation:- The chance or possibility of experiencing damages in relation to the projected returns…

Q: Why is diversification considered “good” by most professionals? Can you think of a situation where…

A: Investment means engaging your funds to generate income for the future. Risk and return are two…

Q: A company's stock price jumped when it announced that its revenue had decreased because of the…

A: In this question, we are required to determine the type of risk in which company's stock price jumps…

Q: How would you expect this situation to affect the assessment of Eastern’s financial condition and…

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Q: Bid rigging and kickbacks create unfair and uncompetitive bidding processes which may result in…

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Q: How are conflicts between the shareholders and the management created? Which of the following is…

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Q: Identify the reason why some individual is afraid to start a business. a. It is stress free b. It…

A: Business means doing some activity to earn some profits like buying and selling goods or…

Q: A company believes that it is subject to scrutiny by particular interest groups such as employee…

A: Revenue recognition is a pillar of accrual accounting that states that revenue must be recognised…

Q: What is a good response to? Fair value hedges are used to mitigate exposure to fluctuations in the…

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Q: Corporate risk views the risk of a project as if it were held in isolation, whereas, stand-alone…

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Q: Which one of the following is a soft benefit?    Depreciation tax shield   Reduction in the number…

A: Soft benefit:- It is the benefits that can be measured in terms of money. It can include aspects…

Q: Identify an example of a systematic risk faced by QANTAS Ltd. from the scenarios below.   Select…

A: Systematic risk is a very important concept in finance. It is that risk which is inherent to the…

Q: Competition can be depended on to keep insurance rates from being excessive, and good management…

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Q: Ethical Considerations. Are poison-pill defenses ethical? If a potential acquirer buys company stock…

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Q: Why are future accountants learning about environmental hazards and controls?

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Q: Which one of the following best describes systematic risk in owning the common stock of the Ford…

A: Systematic risk: Risk which cannot be diversifiable. Systematic risk will affect entire market…

Q: 20. Which of the following control objectives for Investment under the Acquire-to-Retire process is…

A: Investment under the Acquire-to-Retire process is most likely the top priority where audit…

Q: Liquidity risk is A) the risk of bad business strategy or management decisions being made B) the…

A: Liquidity risk is the possibility that an investor or entity may encounter difficulty in buying or…

Q: Factors that influence business risk include except   Group of answer choices   A)liability…

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Q: Suppose profits earned by one firm are independent of profits earned by other firms. When managers…

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Q: Which of the follwing is not a mechanism to reduce agenct's undesirable behavior?   A. knowledge…

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A: Types of risk consist of financial risk, operational risk and business risk.

Q: true or false  One challenge corporate entrepreneurs face is they are likely to face hostile…

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Q: Explain two possible risks to a company that makes losses regularly?

A: There are many possible risks of bussiness losses.

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Q: Answer true or false and explanation to why. Restructuring the liabilities might positively…

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Q: A company expected to go bankrupt in the near future is considered to be operating under the…

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Q: Explain how hazards will help reduce the impact of loss in a company?

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Q: or

A: A hostile takeover is a sort of business purchase or merger that is carried out against the…

Q: Which of the following statements is/are INCORRECT? O 1) Takeover threats tends to affect managerial…

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Q: Which of the following represent undiversifiable​ risks? I. The Federal Reserve raises interest…

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Q: Which of the following actions of the manager of a borrowing firm might cause a moral hazard problem…

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Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.