I&R M Portfolio tools
9 important questions on I&R M Portfolio tools
What are the four main tools for Risk management?
- Investment choices
- financing choices
- insurance
- financial derivatives
What is meant with the risk management tool "investment choices":
What is meant with the risk management tool " Financing choices?:
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
What is meant with the risk management tool "Insurance":
What is meant with the risk management tool "Financial derivatives":
Why is financial risk management important?
- Ensure sufficient cash flow to make sure planned investments can be done.
- Prevent firms getting into financial difficulties (Reduce the costs of financial distress)
- Reduce the average tax payment (By reducing profits in good years and increasing these in bad years.
When are the Standard deviation and/or variance appropriate measures?
What measure is appropriate when an investor hold many securities and forms a portfolio?
What does the mean standard deviation diagram show?
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
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