Business > CASE STUDY > BUS_FP3062_Assessment7_Att1.docx Characterizing Risk and Return Capella University BU (All)

BUS_FP3062_Assessment7_Att1.docx Characterizing Risk and Return Capella University BU

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BUS_FP3062_Assessment7_Att1.docx Characterizing Risk and Return Capella University BUS-FP3062 Characterizing Risk and Return 1. Investment risk refers to uncertainties investors are ready and w... illing to shoulder to realize gains from an investment (Wall Street mojo, 2020).Finance and investments are the probability of having actual results differing from the expected results or earnings, categorized as systemic or non-systemic. Systemic risks deal with an investment market's uncertainty but un-systemic consists of uncertainties that affect investment performance but are asset-specific. Measures of risks are statistical formulae and tools used to assess the risks involved in business investments. Risks are measured by quantifying volatility, which is the differencebetween actual and average/expected returns. The resultant difference is the standard deviation, which defines the expected range of returns from an investment. Generally, the risk is measured by standard deviation, beta coefficient, conditional value at risk, or value. 2. Firm-specific risk are risks that involve a particular company or firm due to some business issues that impact the firm or industry-leading to uncertainties. We can refer to the portion of the total risk attributable to a specific firm or industry factors. Sources of this risk include poor management decisions, a new competitor's entrance, and technology changes.Marketrisks are a portion of the total risk attributable to general economic factors (Hue, Jinks, Spain, Bora, &. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . . [Show More]

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