risk

Risk • Risk can be defined as the variability in the actual return emanating from a project in future over its working life, in relation to the estimated return that was forecasted at the time of selecting the project. The greater the variability between the actual and estimated return, the...

Since the international trade implies returns and payments in a variety of currencies whose relative values may fluctuate it involves taking foreign exchange risk. The players mentioned above are facing this risk. A key question facing the players then is whether these exchange risks are...

Risk Management Risk management has taken centre stage in any discussion on management of banks in the recent past. To be sure, risk taking is as old as banks. Banks are in the business of taking deposits, repayable virtually on demand and lending/ investing the funds in illiquid assets...

EXPECTED RISK CALCULATION PORTFOLIO RISK = SQRT ((XX2*SDX2) + (XY2*SDY2) + (2*XX*XY* (rXY*SDX2*SDY2)))] Where, Xx, Xy = proportion of total portfolio invested in security X& Y respectively sdx, sdy = standard deviation of stock X & stock Y respectively rxy = correlation coefficient of x & y

Celebrity Controversy Risk The perfect example here is of Salman Khan and the controversy in which he crushed a man to death with his Pajero when he was driving under the influence of alcohol. Also, any act on the part of the endorser that gives him a negative image among the audience and...

i would like to know what are the risks associated with job portals

RISK AND FAILURES ATTACHED TO BRAND EXTENSIONS Can a brand be all things to all people? Some like Virgin and Mitsubishi have tried. Those few that have succeeded with broad based extensions have a benefit thread running through their products that customers of the respective categories want...

Hi, I have to complete a 100 mark project on the market risk analysis of hedge funds. I had selected value at risk analysis for my project but could not find sufficient information at all. Could anyone plz help me choose a financial tool to study the risk of hedge funds. It would be really...

EXAMPLE : SUPPOSE THAT IN THE PREVIOUS EG, INSTEAD OF ROCKETING UP BY 25%, THE SHARES FALL BY 25%. NOW, YOUR INVESTMENT IS WORTH RS. 15000 (200 SHARES* 75) NOW, YOU PAY BACK YOUR BROKER RS. 10000, & END UP WITH RS. 5000. IT RESULTS IN A LOSS OF RS. 5000 THAT’S A 50% LOSS, WHICH OTHERWISE(...

Exposure and Risk Exposure is a measure of the sensitivity of the value of a financial item (asset, liability or cash flow) to changes in the relevant risk factor while risk is a measure of variability of the value of the item attributable to the risk factor. Let us understand this distinction...

Risks associated with international projects- financial, political, others 1. Financial risk In general, international projects are prone to greater financial risk as a bulk of finance is in the form of debt. The major factors affecting financial risk are degree of indebtedness, the terms and...

Hello guy's, I am searching for few information on Risk in International Financial Project.

JP Morgan Risk Metrics Model Idea is to determine the daily earnings at risk = dollar value of position × price sensitivity × potential adverse move in yield Example of 7-year zero-coupon bonds Price volatility = (-MD)  (Potential adverse change in yield) = (-6.527)  (0.00165) = -1.077% MD...

RISK IN FINANCIAL MARKET market risk, Interest rate risk , credit risk, off-balance-sheet risk, technology and operational risk, foreign exchange risk, country risk, liquidity risk, insolvency risk Market Risk Incurred in trading of assets and liabilities (and...

RELATION BETWEEN RISK AND RETURNS: The more risky a project, the higher the expected returns. The Trade-off between Risk & Return can be minimized by breaking the project into three stages. Despite commonality of risk, the spread & intensity vary between different...

“Risk refers to Deviations from Expectations”. Risk is often measured in terms of viability of returns. Expected Returns reflects the benefit an investor anticipates from investment. Required Returns reflects an investor demands for assuming risk. When Required rate of returns is greater...

A financial derivative is a tool which derives its value from an underlying asset, where the asset can be anything that exists as a tradable entity . This value is derived on the future expectation of the asset price movement to be experienced by the investors involved in the transaction of...

PRIME RISK FACTORS EXTERNAL RISK FACTORS Immigration restrictions could limit operations in the United States. May face currency exchange risks. Political opposition to outsourcing in US could adversely affect business. Reduction or termination of our tax incentives will...

Managing Foreign Exchange Risk Transaction Exposure- when benefits and costs of a transaction can be affected by exchange rate movements that occur after legal obligation. This can be managed in one of the following ways Go Naked, Buy forward, use options market, or acquire an offsetting...

RISK MANAGEMENT OBJECTIVES OF RISK MANAGEMENT To monitor trading activity. To enforce the various trading limits that are specified by the Exchange To detect and prevent manipulation and faulty trade practices To build investor confidence RISK CONTAINMENT MEASURES Capital...