Explain how stock price volatility is more likely to imply risk than e.docx
•Download as DOCX, PDF•
0 likes•5 views
Explain how stock price volatility is more likely to imply risk than earnings volatility. Solution Stock price volatility is more likely to imply risk than earnings volatility : Risk is the chance that some unfavorable event will occur but investment risk can be measured by the variability of the investment’s earnings. Generally, the term volatility is simply synonymous with risk. In public view high volatility is to be deplored because it means that security values are not dependable and the capital markets are not functioning as well as they should. Earnings comes as you invest, though sooner or later. It is the risk of occuring of show of earnings which is brought by volatility in the stock price. Earnings volatility does not necessarily imply investment risk. However, stock price volatility does signify risk. .
Report
Share
Report
Share
Recommended
Better Investment Better Returns
Diversifying investments across different asset classes reduces risk by distributing exposure rather than concentrating it in one area. While no investment is completely risk-free, diversification lessens overall risk by ensuring that if one asset fails, gains in other areas can offset those losses. It also balances investments between asset classes with varying risk profiles. Investors should consider their risk tolerance and financial goals to determine an appropriate diversified portfolio that limits risk while pursuing returns. Higher risk investments also provide the potential for higher returns.
Types of risk
This document discusses various types of risk in finance. It identifies default risk, interest rate risk including price and reinvestment rate risks, liquidity risk, inflation risk, market risk, firm-specific risk, economic risk, downside risk, project risk, financial risk, business risk, foreign exchange risks including translation and transaction risks, total risk, and obsolescence risk. It provides brief definitions and examples for each type of risk.
Introduction to Investing
This document provides an introduction to becoming a successful investor. It discusses several key points:
1) Markets are difficult to predict in the short-term, but following a strategy of regular savings and rebalancing can help reduce risks over the long run.
2) Risk and potential returns are correlated - higher risks allow for higher potential returns but do not guarantee them. Understanding risks is important.
3) Diversification through asset allocation and collective funds can help manage risks. Selecting funds based on manager performance is also discussed.
Introduction to Investing 07-05-2015
This document provides an introduction to becoming a successful investor. It discusses several key points:
1) Markets are difficult to predict in the short-term, but following a strategy of regular savings and rebalancing can help reduce risks over the long run.
2) Risk and potential returns are correlated - higher risks allow for higher potential returns but do not guarantee them. Understanding risks is important.
3) Diversification through asset allocation and collective funds can help manage risks. Selecting funds based on manager performance is also discussed.
Introduction to Investing 07-05-2015
This document provides an introduction to becoming a successful investor. It discusses several key points:
1) Markets are difficult to predict in the short-term, but regular savings plans can take advantage of buying low during downturns. Understanding risks is important, as higher potential returns come with higher risks.
2) Diversification through asset allocation and rebalancing is important to manage risk. Measuring risk focuses on volatility, but this does not guarantee future performance.
3) Factors like valuations based on price-to-earnings ratios and understanding inflation risk are also part of becoming a successful long-term investor. The document provides an overview of basic investing concepts.
Answernondiversifiable riskmeaningRisk of an investment asset .pdf
Answer
nondiversifiable risk
meaning
Risk of an investment asset that cannot be reduced or eliminated by adding that asset to a
diversified investment portfolio. Market or systemic risks are non-diversifiable risks
The amount of investment might decrease over a period of time only due to economic changes or
other events which affect high varities of the market. However, investment diversification and
asset allocation can provide protection against non-diversifiable risk as different sections of the
market have a tendency to underperform at different times.
Solution
Answer
nondiversifiable risk
meaning
Risk of an investment asset that cannot be reduced or eliminated by adding that asset to a
diversified investment portfolio. Market or systemic risks are non-diversifiable risks
The amount of investment might decrease over a period of time only due to economic changes or
other events which affect high varities of the market. However, investment diversification and
asset allocation can provide protection against non-diversifiable risk as different sections of the
market have a tendency to underperform at different times..
Introduction to Investing - Infinity
This document provides an introduction to investing and discusses several key concepts:
1) It is impossible to consistently predict when markets will rise and fall, so the best strategy is to invest regularly over time through ups and downs to benefit from pound cost averaging.
2) While it is difficult to determine if markets are cheap or expensive, standard valuation metrics like the price-to-earnings ratio can provide some guidance.
3) All investments carry risk, and higher potential returns generally require taking on more risk. It is important to understand the risks and reduce risk exposure when markets are highly valued.
Risk Management
This document discusses risk management concepts. It defines risk management as the process of identifying, analyzing, and mitigating or accepting uncertainty in investment decision making. It then describes the two steps of risk management as determining existing risks and handling risks in a way that aligns with investment objectives. Various examples of risk management in different financial contexts are provided.
Recommended
Better Investment Better Returns
Diversifying investments across different asset classes reduces risk by distributing exposure rather than concentrating it in one area. While no investment is completely risk-free, diversification lessens overall risk by ensuring that if one asset fails, gains in other areas can offset those losses. It also balances investments between asset classes with varying risk profiles. Investors should consider their risk tolerance and financial goals to determine an appropriate diversified portfolio that limits risk while pursuing returns. Higher risk investments also provide the potential for higher returns.
Types of risk
This document discusses various types of risk in finance. It identifies default risk, interest rate risk including price and reinvestment rate risks, liquidity risk, inflation risk, market risk, firm-specific risk, economic risk, downside risk, project risk, financial risk, business risk, foreign exchange risks including translation and transaction risks, total risk, and obsolescence risk. It provides brief definitions and examples for each type of risk.
Introduction to Investing
This document provides an introduction to becoming a successful investor. It discusses several key points:
1) Markets are difficult to predict in the short-term, but following a strategy of regular savings and rebalancing can help reduce risks over the long run.
2) Risk and potential returns are correlated - higher risks allow for higher potential returns but do not guarantee them. Understanding risks is important.
3) Diversification through asset allocation and collective funds can help manage risks. Selecting funds based on manager performance is also discussed.
Introduction to Investing 07-05-2015
This document provides an introduction to becoming a successful investor. It discusses several key points:
1) Markets are difficult to predict in the short-term, but following a strategy of regular savings and rebalancing can help reduce risks over the long run.
2) Risk and potential returns are correlated - higher risks allow for higher potential returns but do not guarantee them. Understanding risks is important.
3) Diversification through asset allocation and collective funds can help manage risks. Selecting funds based on manager performance is also discussed.
Introduction to Investing 07-05-2015
This document provides an introduction to becoming a successful investor. It discusses several key points:
1) Markets are difficult to predict in the short-term, but regular savings plans can take advantage of buying low during downturns. Understanding risks is important, as higher potential returns come with higher risks.
2) Diversification through asset allocation and rebalancing is important to manage risk. Measuring risk focuses on volatility, but this does not guarantee future performance.
3) Factors like valuations based on price-to-earnings ratios and understanding inflation risk are also part of becoming a successful long-term investor. The document provides an overview of basic investing concepts.
Answernondiversifiable riskmeaningRisk of an investment asset .pdf
Answer
nondiversifiable risk
meaning
Risk of an investment asset that cannot be reduced or eliminated by adding that asset to a
diversified investment portfolio. Market or systemic risks are non-diversifiable risks
The amount of investment might decrease over a period of time only due to economic changes or
other events which affect high varities of the market. However, investment diversification and
asset allocation can provide protection against non-diversifiable risk as different sections of the
market have a tendency to underperform at different times.
Solution
Answer
nondiversifiable risk
meaning
Risk of an investment asset that cannot be reduced or eliminated by adding that asset to a
diversified investment portfolio. Market or systemic risks are non-diversifiable risks
The amount of investment might decrease over a period of time only due to economic changes or
other events which affect high varities of the market. However, investment diversification and
asset allocation can provide protection against non-diversifiable risk as different sections of the
market have a tendency to underperform at different times..
Introduction to Investing - Infinity
This document provides an introduction to investing and discusses several key concepts:
1) It is impossible to consistently predict when markets will rise and fall, so the best strategy is to invest regularly over time through ups and downs to benefit from pound cost averaging.
2) While it is difficult to determine if markets are cheap or expensive, standard valuation metrics like the price-to-earnings ratio can provide some guidance.
3) All investments carry risk, and higher potential returns generally require taking on more risk. It is important to understand the risks and reduce risk exposure when markets are highly valued.
Risk Management
This document discusses risk management concepts. It defines risk management as the process of identifying, analyzing, and mitigating or accepting uncertainty in investment decision making. It then describes the two steps of risk management as determining existing risks and handling risks in a way that aligns with investment objectives. Various examples of risk management in different financial contexts are provided.
18 Wealth Creation
This document discusses diversifying investments across different asset classes to reduce risk. It recommends spreading capital across stocks, bonds, property and cash. Investing only in deposits risks capital loss to inflation, so a diversified portfolio balances risk and return. Collective investment funds further diversify risk by pooling money with other investors across geographical regions and asset types. Properly diversifying assets can effectively reduce risk exposure, though investment values may still fluctuate.
10 The Investment Environment - PART 2
The presentation covers topics like Investment and Speculation, Investment and Gambling, Investment Management Process, Types of Speculators, Technical Analysis and Fundamental Analysis, Concept of Risk and Return
Portfolio analysis
This document discusses portfolio analysis and security analysis. It defines portfolio analysis as determining the future risk and return of holding various combinations of individual securities. Portfolio analysis involves diversifying investments across different assets, industries, and companies to reduce non-systematic risk. The document contrasts traditional portfolio analysis, which focuses on lowest risk securities, with modern portfolio theory, which emphasizes combining high and low risk securities to maximize returns at a given level of risk. Key aspects of portfolio analysis include calculating expected returns, variance, and the standard deviation and beta of a portfolio to measure risk. Diversification is presented as an important tool to reduce unsystematic risk.
Project final
This document discusses portfolio optimization using the tracking model method. It defines various types of investment risk that investors and financial institutions face, such as interest rate risk, business risk, credit risk, inflation risk, and reinvestment risk. It then examines various risk measures used in portfolio optimization models, including variance, mean absolute deviation, value at risk (VaR), and conditional value at risk (CVaR). The results section finds that using the tracking model and provided data, the portfolio is only feasible for a risk lover investor, as it invests entirely in the single best performing asset.
Risk Return Basics for Investing
Outline to Understanding concept of risk and return on investments for individuals and amateur investors
8. risk
This document defines and describes different types of risk that investors consider when analyzing stocks. It discusses systematic risk, which affects the entire market and includes market risk, interest rate risk, and purchasing power risk. Market risk is related to bull and bear markets. Interest rate risk impacts stock prices due to fluctuations in interest rates. Purchasing power risk is the loss of purchasing power from inflation. The document also mentions unsystematic risk, which is risk specific to a particular stock.
4 Risk and its types.pptx
This document discusses managing investment risks. It defines risk as uncertain future outcomes different from expected outcomes. Sources of risk include interest rate, liquidity, default, reinvestment, inflation, exchange rate, political, regulatory, tax rate, business, and investment manager risks. Broadly, risks are classified as systematic (market) risks, which impact all investments, and unsystematic (specific) risks, which can be reduced through diversification. Total risk equals systematic plus unsystematic risk. Standard deviation and beta are used to measure total and systematic risks respectively. Risks can be managed through diversification across different securities, asset classes, and geographies, as well as hedging using derivatives.
Risk Analysis
This is a presentation on Risk Analysis in Managerial Decisions. I have pointed out some important element on how to measure and tackle the risk.
Presentation on investor s hedge against inflations2
This document discusses inflation and inflation hedging investments. It defines inflation as a general increase in prices over time that decreases purchasing power. There are two main types of inflation: demand-pull, which occurs when demand outpaces supply, and cost-push, which is caused by rising input costs. Inflation can negatively impact markets, planning, investment, and trade. The document recommends several inflation hedging investment products, including gold, real estate, crude oil, mutual funds, and fixed deposits, with gold seen as a reliable hedge that maintains value during periods of uncertainty.
Investment
Investment risk involves different types of potential losses. There is capital risk of losing the money invested. Currency risk exists if assets are held in foreign currencies. Liquidity risk arises if assets cannot be readily sold on the market. Financial risk is the potential for disruption in a company's finances causing losses. Market risk is the uncertainty of investment prices set by supply and demand. While diversification cannot prevent losses, spreading investments across different asset classes, regions, and industries can help reduce overall risk.
The place of hedging as a risk avert
Hedging is an investment strategy employed to reduce risk from market fluctuations. It involves taking offsetting positions, such as holding securities that move inversely to other investments in a portfolio. The goal of hedging is to limit losses without significantly reducing potential gains. Common hedging instruments include futures, options, and diversifying asset types. While hedging reduces risk, it provides no guarantee and perfect hedges are difficult to achieve.
The place of hedging as a risk avert
Hedging is an investment strategy employed to reduce risk from market fluctuations. It involves taking offsetting positions, such as holding securities that move inversely to other investments in a portfolio. The goal of hedging is to limit losses without significantly reducing potential gains. Common hedging instruments include futures, options, and diversifying asset types. While hedging reduces risk, it provides no guarantee and may limit upside if markets perform strongly in one direction.
Risk measurement slide
This document discusses various methods of measuring risk in investments. It describes standard deviation, which measures how much an investment return deviates from expected returns. The Sharpe ratio measures risk-adjusted performance. Beta measures the volatility of an individual security compared to the overall market. Value at risk calculates the maximum potential loss of a portfolio over a set period of time. R-squared measures how closely a fund's returns match those of a benchmark index. The document also discusses credit, interest rate, liquidity and reinvestment risks for debt funds, as well as market and industry risks for equity investments.
Risk and Return
Risk and Return
-risk and uncertainty
-differences and similarities between risk and uncertainty
-types of risk (systematic and unsystematic)
-why manages risk? and its scope in finance.
-CAPM and its problem
-return
MPL guide to diversification (2011)
This guide discusses diversifying investment portfolios across different asset classes. Diversification helps reduce both market risk and investment risk by spreading funds across assets that may rise or fall differently. However, diversification also lowers potential returns. The key is balancing asset allocation based on an individual's risk tolerance. Effective diversification considers how correlated, or moving together, different assets are. Spreading funds across varied, less correlated assets helps stabilize returns.
Margin of Safety Report Steven Hume
The document summarizes Seth Klarman's book "Margin of Safety" which discusses value investing principles. It covers topics like where most investors go wrong by speculating instead of investing, how Wall Street works against individual investors, issues with institutional investing, and the myths of junk bonds in the 1980s. The book advocates for a value investing approach focused on obtaining a margin of safety through rigorous analysis to find undervalued securities trading significantly below their intrinsic value.
Portfolio perspectives avoiding_loss_0714
If you understand the difference between a temporary decline and a permanent loss, then you have a leg up on many investors. Unlike temporary declines, permanent losses have a real impact on your portfolio. Permanent losses are losses that cannot be recovered ... when you get out at the low point and the markets recover afterwards.
Chapter 3 Investment Return and Risks
This document discusses key concepts related to Islamic investment, including return, risk, and risk management. It defines return as rewards from investing in the form of income and capital gains. Risk is defined as uncertainty that can cause actual returns to differ from expected returns. There is generally a positive relationship between risk and return, where higher risk investments offer potentially higher returns. The document outlines different types of risk and various approaches to risk management, including identifying risks, measuring them, and determining appropriate responses like risk avoidance or transfer.
risk and return.pptx
This document discusses risk and return from an investment perspective. It defines risk as the probability of getting a return less than expected, which can arise from unexpected changes in dividends, interest rates or stock prices. Risk is categorized as either systematic, stemming from broader economic and market forces outside an investor's control, or unsystematic, which is specific to a particular company. Systematic risk includes market risk, interest rate risk and purchasing power risk. Unsystematic risk includes business risk, related to company-specific operations, and financial risk, regarding a company's capital structure. Standard deviation is presented as a quantitative measure of risk, assessing the dispersion of returns around the expected mean return.
Sapm mod !
The document discusses concepts related to investment including definitions of investment, speculation, and gambling. It defines investment as the employment of funds on assets with the aim of earning income or capital appreciation over time while accepting risk. Speculation is described as short-term trading of securities in hopes of profiting from price changes, while gambling relies solely on chance. The document also outlines the investment process, constraints that impact investment decisions, and different investment strategies such as active versus passive portfolio strategies.
Explore the FASB codification section related to liabilities (405)-Exp.docx
Explore the FASB codification section related to liabilities (405),Explain how speciic liabilities might be treated and justify why this methodology is appropriate.
Solution
Answer: The Liabilities Topic includes the following Subtopics:
The definition of liability can help decide the accounting treatment of the situation. Under the Conceptual Framework a liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. In this case, the past event is the fall and injury to the pedestrian.
Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities. In this case, the expense arises at the time the pedestrian is injured because a liability has also arisen at that time.
Expenses and liability should be recognised.
.
Explore the FASB codification section related to liabilities(405)- Exp.docx
Explore the FASB codification section related to liabilities(405). Explain how specific liabilities might be treated and justify why this methodogy is appropriate . 250-500 words.
Solution
Answer: The Liabilities Topic includes the following Subtopics:
The definition of liability can help decide the accounting treatment of the situation. Under the Conceptual Framework a liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. In this case, the past event is the fall and injury to the pedestrian.
Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities. In this case, the expense arises at the time the pedestrian is injured because a liability has also arisen at that time.
Expenses and liability should be recognised.
.
More Related Content
Similar to Explain how stock price volatility is more likely to imply risk than e.docx
18 Wealth Creation
This document discusses diversifying investments across different asset classes to reduce risk. It recommends spreading capital across stocks, bonds, property and cash. Investing only in deposits risks capital loss to inflation, so a diversified portfolio balances risk and return. Collective investment funds further diversify risk by pooling money with other investors across geographical regions and asset types. Properly diversifying assets can effectively reduce risk exposure, though investment values may still fluctuate.
10 The Investment Environment - PART 2
The presentation covers topics like Investment and Speculation, Investment and Gambling, Investment Management Process, Types of Speculators, Technical Analysis and Fundamental Analysis, Concept of Risk and Return
Portfolio analysis
This document discusses portfolio analysis and security analysis. It defines portfolio analysis as determining the future risk and return of holding various combinations of individual securities. Portfolio analysis involves diversifying investments across different assets, industries, and companies to reduce non-systematic risk. The document contrasts traditional portfolio analysis, which focuses on lowest risk securities, with modern portfolio theory, which emphasizes combining high and low risk securities to maximize returns at a given level of risk. Key aspects of portfolio analysis include calculating expected returns, variance, and the standard deviation and beta of a portfolio to measure risk. Diversification is presented as an important tool to reduce unsystematic risk.
Project final
This document discusses portfolio optimization using the tracking model method. It defines various types of investment risk that investors and financial institutions face, such as interest rate risk, business risk, credit risk, inflation risk, and reinvestment risk. It then examines various risk measures used in portfolio optimization models, including variance, mean absolute deviation, value at risk (VaR), and conditional value at risk (CVaR). The results section finds that using the tracking model and provided data, the portfolio is only feasible for a risk lover investor, as it invests entirely in the single best performing asset.
Risk Return Basics for Investing
Outline to Understanding concept of risk and return on investments for individuals and amateur investors
8. risk
This document defines and describes different types of risk that investors consider when analyzing stocks. It discusses systematic risk, which affects the entire market and includes market risk, interest rate risk, and purchasing power risk. Market risk is related to bull and bear markets. Interest rate risk impacts stock prices due to fluctuations in interest rates. Purchasing power risk is the loss of purchasing power from inflation. The document also mentions unsystematic risk, which is risk specific to a particular stock.
4 Risk and its types.pptx
This document discusses managing investment risks. It defines risk as uncertain future outcomes different from expected outcomes. Sources of risk include interest rate, liquidity, default, reinvestment, inflation, exchange rate, political, regulatory, tax rate, business, and investment manager risks. Broadly, risks are classified as systematic (market) risks, which impact all investments, and unsystematic (specific) risks, which can be reduced through diversification. Total risk equals systematic plus unsystematic risk. Standard deviation and beta are used to measure total and systematic risks respectively. Risks can be managed through diversification across different securities, asset classes, and geographies, as well as hedging using derivatives.
Risk Analysis
This is a presentation on Risk Analysis in Managerial Decisions. I have pointed out some important element on how to measure and tackle the risk.
Presentation on investor s hedge against inflations2
This document discusses inflation and inflation hedging investments. It defines inflation as a general increase in prices over time that decreases purchasing power. There are two main types of inflation: demand-pull, which occurs when demand outpaces supply, and cost-push, which is caused by rising input costs. Inflation can negatively impact markets, planning, investment, and trade. The document recommends several inflation hedging investment products, including gold, real estate, crude oil, mutual funds, and fixed deposits, with gold seen as a reliable hedge that maintains value during periods of uncertainty.
Investment
Investment risk involves different types of potential losses. There is capital risk of losing the money invested. Currency risk exists if assets are held in foreign currencies. Liquidity risk arises if assets cannot be readily sold on the market. Financial risk is the potential for disruption in a company's finances causing losses. Market risk is the uncertainty of investment prices set by supply and demand. While diversification cannot prevent losses, spreading investments across different asset classes, regions, and industries can help reduce overall risk.
The place of hedging as a risk avert
Hedging is an investment strategy employed to reduce risk from market fluctuations. It involves taking offsetting positions, such as holding securities that move inversely to other investments in a portfolio. The goal of hedging is to limit losses without significantly reducing potential gains. Common hedging instruments include futures, options, and diversifying asset types. While hedging reduces risk, it provides no guarantee and perfect hedges are difficult to achieve.
The place of hedging as a risk avert
Hedging is an investment strategy employed to reduce risk from market fluctuations. It involves taking offsetting positions, such as holding securities that move inversely to other investments in a portfolio. The goal of hedging is to limit losses without significantly reducing potential gains. Common hedging instruments include futures, options, and diversifying asset types. While hedging reduces risk, it provides no guarantee and may limit upside if markets perform strongly in one direction.
Risk measurement slide
This document discusses various methods of measuring risk in investments. It describes standard deviation, which measures how much an investment return deviates from expected returns. The Sharpe ratio measures risk-adjusted performance. Beta measures the volatility of an individual security compared to the overall market. Value at risk calculates the maximum potential loss of a portfolio over a set period of time. R-squared measures how closely a fund's returns match those of a benchmark index. The document also discusses credit, interest rate, liquidity and reinvestment risks for debt funds, as well as market and industry risks for equity investments.
Risk and Return
Risk and Return
-risk and uncertainty
-differences and similarities between risk and uncertainty
-types of risk (systematic and unsystematic)
-why manages risk? and its scope in finance.
-CAPM and its problem
-return
MPL guide to diversification (2011)
This guide discusses diversifying investment portfolios across different asset classes. Diversification helps reduce both market risk and investment risk by spreading funds across assets that may rise or fall differently. However, diversification also lowers potential returns. The key is balancing asset allocation based on an individual's risk tolerance. Effective diversification considers how correlated, or moving together, different assets are. Spreading funds across varied, less correlated assets helps stabilize returns.
Margin of Safety Report Steven Hume
The document summarizes Seth Klarman's book "Margin of Safety" which discusses value investing principles. It covers topics like where most investors go wrong by speculating instead of investing, how Wall Street works against individual investors, issues with institutional investing, and the myths of junk bonds in the 1980s. The book advocates for a value investing approach focused on obtaining a margin of safety through rigorous analysis to find undervalued securities trading significantly below their intrinsic value.
Portfolio perspectives avoiding_loss_0714
If you understand the difference between a temporary decline and a permanent loss, then you have a leg up on many investors. Unlike temporary declines, permanent losses have a real impact on your portfolio. Permanent losses are losses that cannot be recovered ... when you get out at the low point and the markets recover afterwards.
Chapter 3 Investment Return and Risks
This document discusses key concepts related to Islamic investment, including return, risk, and risk management. It defines return as rewards from investing in the form of income and capital gains. Risk is defined as uncertainty that can cause actual returns to differ from expected returns. There is generally a positive relationship between risk and return, where higher risk investments offer potentially higher returns. The document outlines different types of risk and various approaches to risk management, including identifying risks, measuring them, and determining appropriate responses like risk avoidance or transfer.
risk and return.pptx
This document discusses risk and return from an investment perspective. It defines risk as the probability of getting a return less than expected, which can arise from unexpected changes in dividends, interest rates or stock prices. Risk is categorized as either systematic, stemming from broader economic and market forces outside an investor's control, or unsystematic, which is specific to a particular company. Systematic risk includes market risk, interest rate risk and purchasing power risk. Unsystematic risk includes business risk, related to company-specific operations, and financial risk, regarding a company's capital structure. Standard deviation is presented as a quantitative measure of risk, assessing the dispersion of returns around the expected mean return.
Sapm mod !
The document discusses concepts related to investment including definitions of investment, speculation, and gambling. It defines investment as the employment of funds on assets with the aim of earning income or capital appreciation over time while accepting risk. Speculation is described as short-term trading of securities in hopes of profiting from price changes, while gambling relies solely on chance. The document also outlines the investment process, constraints that impact investment decisions, and different investment strategies such as active versus passive portfolio strategies.
Similar to Explain how stock price volatility is more likely to imply risk than e.docx (20)
Presentation on investor s hedge against inflations2
Presentation on investor s hedge against inflations2
More from rtodd432
Explore the FASB codification section related to liabilities (405)-Exp.docx
Explore the FASB codification section related to liabilities (405),Explain how speciic liabilities might be treated and justify why this methodology is appropriate.
Solution
Answer: The Liabilities Topic includes the following Subtopics:
The definition of liability can help decide the accounting treatment of the situation. Under the Conceptual Framework a liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. In this case, the past event is the fall and injury to the pedestrian.
Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities. In this case, the expense arises at the time the pedestrian is injured because a liability has also arisen at that time.
Expenses and liability should be recognised.
.
Explore the FASB codification section related to liabilities(405)- Exp.docx
Explore the FASB codification section related to liabilities(405). Explain how specific liabilities might be treated and justify why this methodogy is appropriate . 250-500 words.
Solution
Answer: The Liabilities Topic includes the following Subtopics:
The definition of liability can help decide the accounting treatment of the situation. Under the Conceptual Framework a liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. In this case, the past event is the fall and injury to the pedestrian.
Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities. In this case, the expense arises at the time the pedestrian is injured because a liability has also arisen at that time.
Expenses and liability should be recognised.
.
Explain why UNIX designers chose a unified file abstraction for a vari.docx
Explain why UNIX designers chose a unified file abstraction for a variety of devices and objects that were not regular files. Provide two examples of special files. For each, state one way in which our use of the file system API differs from when we are working with regular files.
Solution
A file system is a logical collection of files on a partition or disk. A partition is a container for information and can span an entire hard drive if desired.
Your hard drive can have various partitions which usually contains only one file system, such as one file system housing the / file system or another containing the /home file system.
One file system per partition allows for the logical maintenance and management of differing file systems.
Everything in Unix is considered to be a file, including physical devices such as DVD-ROMs, USB devices, floppy drives, and so forth.
Special Files
.
Explain why sulfur dioxide and acetic acid have dipole moments- Use an.docx
Explain why sulfur dioxide and acetic acid have dipole moments. Use an electronegativity argument.
Solution
*
Sulphur dioxide has bent shape with one lone pair on Sulphur and two oxygen atoms are more electronegative than Sulphur. Hence the bond pair of electrons are strongly attracted by oxygen atoms where as lone pair move in opposite direction and net there exists some unequal distribution of electrons around central sulphur. Thus sulphur dioxide exhibits dipole moment.
**
In Acetic acid the central C is attached to one - CH 3 group, one O with double bond and one - OH gorup. Around this Carbon, the shape is trigonal plananr.
Since the electronegativity of O is greater than C, the bond pair of electrons spends more time nearer the O and hence there exists unequal distribution of electrons around central C. Thus the molecules has a net dipole moment.
.
Explain what type of audit report is used when The entity would not al.docx
Explain what type of audit report is used when The entity would not allow the CPA to confirm any of the accounts receivable. All other procedures were performed as considered necessary and no other issues were encountered, but the CPA was unable to satisfy themselves with regard to the balance in accounts receivable. Assume that the accounts receivable comprised 40% of the total assets of the entity?
Solution
When an auditor of financial statements does not confirm material accounts receivable, but is satisfied by the application of alternative auditing procedures, she normally should:
issue an unqualified opinion with no reference to this omission but be prepared to defend the action.
.
Explain what are Provisional Entries-SolutionProvisional Entries - Pro.docx
Explain what are Provisional Entries?
Solution
Provisional Entries - Provisional Entries are made every month/Year to ensure few of those accounting entries which might not get recorded in time and should be recorded to ensure correct accounting . A provision can be a liability of uncertain timing or amount.
Provision entries are entries that are made to account for expenses that have not been accounted in the period for which it relates. Hence the provision is created by debiting the expenses and crediting the party account or liability account. Provision means liabilities It means payable account. It helps to control payable accounts like telephone charges, Gratuity , Providend Fund accounts.
Example are - Provision for DoubtFul Debt , Provision for Taxation , Provision for Telephone Bills ( Invoice not received yet )
.
Explain the trade-offs between contiguous- noncontiguous linked- and n.docx
Explain the trade-offs between contiguous, noncontiguous linked, and noncontiguous indexed file allocation. In particular, note the effect on sequential and random access methods ?
Solution
Contiguous File Allocation
+ fast sequential access
+ fast random access
+ low disk space overhead
- external fragmentation
- hard to grow file
Linked File Allocation
+ no external fragmentation
+ easy to grow file
- very slow random access (must search through the whole list)
- potentially slow sequential access (if the list blocks are randomly allocated over the disk surface)
- some disk space overhead to store pointers to the next block.
Indexed File Allocation
+ i-node in memory only when file is open
+ Easy random access
- What if each a file grows beyond the limit of fixed number of disk addresses?
+ Pros
- Cons
.
Explain the results of the Michelson-Morley experiment if the ether ha.docx
If the ether had been proven real by the Michelson-Morley experiment, it would have meant that light requires a medium to propagate through, rather than being able to travel through a vacuum. This would affect the second law of special relativity, which states that the speed of light is constant and independent of the motion of the light source. The speed of light would depend on the direction of Earth's motion through the ether medium.
Explain the reasons why chloride ions (Cl-) is detrimental to corrosio.docx
Explain the reasons why chloride ions (Cl-) is detrimental to corrosion of various metals.
Solution
Corrosion of metals can be defined as the degradation of quality or quantity of metals by the attacking of atmospheric gases or other radicals to form unwanted products.
From the difinition metallic nature, metals have a tendency to lose electrons and become positively charged ions at the surface level and these positive charged species attracts negative chloride ions and undergo reaction to form undesired metal chlorides.
M ----------> M+ + e-
M+ + Cl- -----------> metal chloride ( undesired product )
Chloride ion being highly reactive it can react with various metals and so its is detrimental to corrosion of various metals.
.
Explain the purpose of a data member-SolutionAnswer Data Member It is.docx
Explain the purpose of a data member.
Solution
Answer
Data Member
It is nothing but an object may contain values which are stored internally and are unique to that object.
A data member may be any type. Including Classes already defined, references of object any type.
We need to declare a data member in the classs.
that is like in C++ we can write like in private , public blocks
private :
int sum;
------
------
public :
int a;
float value;
-----
-----
In java we can write as
int a,b,c;
int sum=30,value=40;
.
Explain the function of the following methods in LinkedList 1- addFirs.docx
The document describes 7 methods in a LinkedList class: addFirst adds an element to the head of the list; contains searches for an element and returns true if found; get returns the element at a given index; indexOf returns the index of an element or -1 if not found; remove deletes the last element; remove(index) deletes the element at a given index; and set replaces the element at an index with a new element.
Explain the motivation behind using a header file for a C program-Solu.docx
Explain the motivation behind using a header file for a C program.
Solution
A header file is a file containing C declarations and macro definitions to be shared between several source files.
Header files purpose:
System header files declare the interfaces to parts of the operating system.
these will provide the definitions and declarations you need to invoke system calls and libraries.
Your own header files contain declarations for interfaces between the source files of your program. Each time you have a group of related declarations and macro definitions all or most of which are needed in several different source files, it is a good idea to create a header file for them.
Including a header file is equal to copying the content of the header file
.
Explain the effect doping towards an intrinsic silicon- Give one examp.docx
Explain the effect doping towards an intrinsic silicon. Give one example of donor element and one example of acceptor element. [15 marks]
Solution
Silicon is an intrinsic semiconductor. The doping is done to introduce impurities into an intrinsic semiconductor for modulating its electrical properties. A semiconductor doped to a very high level can act as a conductor and is generally referred to as degenerate semiconductor
There can be two types of impurities ie., donor type and acceptor type.
Donor type are n-type semi conductors which will increase the number of unpaired electrons. An example of this is Phosphorus or Arsenic, Antimony, Bismuth
Acceptor type are p-type which will increase the number of holes or hole concentration. Examples are Aluminum, Gallium, Boron, Indium.
.
Explain the difference between private and proctected members of a cla.docx
Private members of a class can only be accessed within the class itself and cannot be inherited by subclasses. Protected members can be accessed by subclasses even if they are in a different package and can be inherited. Private members make the data hidden and secure, while protected is less restrictive by allowing access to subclasses.
Explain how goverment deficit lead to increases in the money supply-.docx
Explain how goverment deficit lead to increases in the money supply?
Explain how goverment deficit lead to increases in the money supply?
Solution
Government deficit is excess of government expenditure over government earnings (majorly from taxes), when a goverment deficit is financed through priniting of money, the huge amount of money enters into the economy from the reserve bank of the economy which leads to rise in the overall money supply.
.
Explain how doping Si allows you to transport charges in a detector-So.docx
Explain how doping Si allows you to transport charges in a detector.
Solution
Si is surrounded by four other Si atoms. Each Si shares one electron to the neighboring Si atom. A total of four electrons are shared by a single Si to its four neighbouring Si atoms.
When Si is doped wih a pentavalent element, four of the electrons of the pentavalent element is shared with four neighbouring SI atoms. There is one electron from the pentavalent element which is free to move and conduct.
When Si is doped with trivalent element, the three electrons are shared with three of the neighbouring Si atoms. There is no electron to share with the fourth Si atom. So, there is a hole. SInce the hole is electron deficient, it accepts electron somewhere else in the lattice resulting in creation of another hole. This shifting of the hole is responsible for conduction.
.
Explain how an --interest group-- (or --special interest group--) may.docx
Explain how an \"interest group\" (or \"special interest group\") may try to influence public policy made by departments and/or agencies
Solution
Interest Groups
Functions of interest groups
Activities
Structures
Legitimacy
Problems of analysis and research
BIBLIOGRAPHY
Interaction between the polity and organized interests has taken place in all periods of history. Estates, guilds, trading companies, and the like are the more immediate antecedents of the modern interest group, which may be defined as a voluntary association of individuals who band together for the defense of an
.
Explain the concept entropy Explain the concept entropySolutionAnswe.docx
Explain the concept entropy
Explain the concept entropy
Solution
Answer-
Entropy - Entropy is a measure of the randomness of a substances. In statistical mechanics, entropy is a measure of the number of ways in which a system may be arranged, often taken to be a measure of \"disorder\" (the higher the entropy , the higher the disorder).
It is denoted by S, the entropy of substance and universe is calculated by appropriated formulas.
deltaG =deltaH - Tdelta S
.
Explain how would you determine a covalent bond compounds bond using L.docx
Explain how would you determine a covalent bond compound’s bond using Lewis rule.
Solution
Covalent bond is formed by mutual sharing of electrons from both elements. Normally elements that have small electronegative difference tend to form covalent bonds. Sometimes compounds that share electrons unequally are called polar compounds and the process is called polarity. An example of a polar compound is water (H 2 O).Each element satisfies newland\'s octet rule through sharing of electrons by which way the bond formed.
Formal charge = (original number of valence electrons - actual number of electrons used in filling the octet). Only one electron is counted in a bond since bond formed by sharing of two electrons.
Hope this helped you!
Thank You So Much! Please Rate this answer as you wish.(\"Thumbs Up\")
.
Expansive (swelling) clays exist in various areas across North America.docx
Expansive (swelling) clays exist in various areas across North America. What kind of mineral is typically associated with the swelling condition? What is the explanation of the expansion? Identify some typical problems caused to civil engineering structure by expansive clays
Solution
Montomorrilonite mineral is typically associated with swelling soil.Because of larger surface area of these minerals water is attracted to the surface of these minerals.water enters in between the layers of the minerals of the soil forming a double layer of water around each mineral particles in the soil resulting in expansion of the soil.
Typical problems caused by expansive soil to civil engineering structures
1) Differential settlement of the foundation.
2) Alternate swelling and shrinkage causes cracks in the walls of the buildings.
3) Expansive soil should be first stabililized for building any structure on it.
.
More from rtodd432 (20)
Explore the FASB codification section related to liabilities (405)-Exp.docx
Explore the FASB codification section related to liabilities (405)-Exp.docx
Explore the FASB codification section related to liabilities(405)- Exp.docx
Explore the FASB codification section related to liabilities(405)- Exp.docx
Explain why UNIX designers chose a unified file abstraction for a vari.docx
Explain why UNIX designers chose a unified file abstraction for a vari.docx
Explain why sulfur dioxide and acetic acid have dipole moments- Use an.docx
Explain why sulfur dioxide and acetic acid have dipole moments- Use an.docx
Explain what type of audit report is used when The entity would not al.docx
Explain what type of audit report is used when The entity would not al.docx
Explain what are Provisional Entries-SolutionProvisional Entries - Pro.docx
Explain what are Provisional Entries-SolutionProvisional Entries - Pro.docx
Explain the trade-offs between contiguous- noncontiguous linked- and n.docx
Explain the trade-offs between contiguous- noncontiguous linked- and n.docx
Explain the results of the Michelson-Morley experiment if the ether ha.docx
Explain the results of the Michelson-Morley experiment if the ether ha.docx
Explain the reasons why chloride ions (Cl-) is detrimental to corrosio.docx
Explain the reasons why chloride ions (Cl-) is detrimental to corrosio.docx
Explain the purpose of a data member-SolutionAnswer Data Member It is.docx
Explain the purpose of a data member-SolutionAnswer Data Member It is.docx
Explain the function of the following methods in LinkedList 1- addFirs.docx
Explain the function of the following methods in LinkedList 1- addFirs.docx
Explain the motivation behind using a header file for a C program-Solu.docx
Explain the motivation behind using a header file for a C program-Solu.docx
Explain the effect doping towards an intrinsic silicon- Give one examp.docx
Explain the effect doping towards an intrinsic silicon- Give one examp.docx
Explain the difference between private and proctected members of a cla.docx
Explain the difference between private and proctected members of a cla.docx
Explain how goverment deficit lead to increases in the money supply-.docx
Explain how goverment deficit lead to increases in the money supply-.docx
Explain how doping Si allows you to transport charges in a detector-So.docx
Explain how doping Si allows you to transport charges in a detector-So.docx
Explain how an --interest group-- (or --special interest group--) may.docx
Explain how an --interest group-- (or --special interest group--) may.docx
Explain the concept entropy Explain the concept entropySolutionAnswe.docx
Explain the concept entropy Explain the concept entropySolutionAnswe.docx
Explain how would you determine a covalent bond compounds bond using L.docx
Explain how would you determine a covalent bond compounds bond using L.docx
Expansive (swelling) clays exist in various areas across North America.docx
Expansive (swelling) clays exist in various areas across North America.docx
Recently uploaded
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Aberdeen
Leveraging Generative AI to Drive Nonprofit Innovation
In this webinar, participants learned how to utilize Generative AI to streamline operations and elevate member engagement. Amazon Web Service experts provided a customer specific use cases and dived into low/no-code tools that are quick and easy to deploy through Amazon Web Service (AWS.)
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
Iván Bornacelly, Policy Analyst at the OECD Centre for Skills, OECD, presents at the webinar 'Tackling job market gaps with a skills-first approach' on 12 June 2024
How to Create a More Engaging and Human Online Learning Experience
How to Create a More Engaging and Human Online Learning Experience Wahiba Chair Training & Consulting
Wahiba Chair's Talk at the 2024 Learning Ideas Conference. How to Make a Field Mandatory in Odoo 17
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
Main Java[All of the Base Concepts}.docx
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
How to Setup Warehouse & Location in Odoo 17 Inventory
In this slide, we'll explore how to set up warehouses and locations in Odoo 17 Inventory. This will help us manage our stock effectively, track inventory levels, and streamline warehouse operations.
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...Nguyen Thanh Tu Collection
https://app.box.com/s/qhtvq32h4ybf9t49ku85x0n3xl4jhr15Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptxMohd Adib Abd Muin, Senior Lecturer at Universiti Utara Malaysia
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
How to Fix the Import Error in the Odoo 17
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
How to Manage Your Lost Opportunities in Odoo 17 CRM
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
Hindi varnamala | hindi alphabet PPT.pdf
हिंदी वर्णमाला पीपीटी, hindi alphabet PPT presentation, hindi varnamala PPT, Hindi Varnamala pdf, हिंदी स्वर, हिंदी व्यंजन, sikhiye hindi varnmala, dr. mulla adam ali, hindi language and literature, hindi alphabet with drawing, hindi alphabet pdf, hindi varnamala for childrens, hindi language, hindi varnamala practice for kids, https://www.drmullaadamali.com
The Diamonds of 2023-2024 in the IGRA collection
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)Academy of Science of South Africa
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.Recently uploaded (20)
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
Leveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit Innovation
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
How to Create a More Engaging and Human Online Learning Experience
How to Create a More Engaging and Human Online Learning Experience
How to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 Inventory
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Liberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdf
How to Manage Your Lost Opportunities in Odoo 17 CRM
How to Manage Your Lost Opportunities in Odoo 17 CRM
South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)
Explain how stock price volatility is more likely to imply risk than e.docx
- 1. Explain how stock price volatility is more likely to imply risk than earnings volatility. Solution Stock price volatility is more likely to imply risk than earnings volatility : Risk is the chance that some unfavorable event will occur but investment risk can be measured by the variability of the investment’s earnings. Generally, the term volatility is simply synonymous with risk. In public view high volatility is to be deplored because it means that security values are not dependable and the capital markets are not functioning as well as they should. Earnings comes as you invest, though sooner or later. It is the risk of occuring of show of earnings which is brought by volatility in the stock price. Earnings volatility does not necessarily imply investment risk. However, stock price volatility does signify risk.