Answer:
Residual risk
Explanation:
Risk is generally defined as the likelihood that some harm can happen. In quantitative evaluations, risk is defined as the probability that some negative event happens . Residual risk is the threat that remains after all efforts to identify and eliminate risk have been made. There are four basic ways of dealing with risk: reduce it, avoid it, accept it or transfer it. Since residual risk is unknown, many organizations choose to either accept residual risk or transfer it for example, by purchasing insurance to transfer the risk to an insurance company. Residual risk is the remaining risk that exists after all hazard mitigation measures have been implemented or exhausted in accordance with the applicable safety requirements and the project risk management process.
You can describe stretch goals as goals placed above the ones you need or strive to achieve, as a secondary objective. Think of achieving a stretch goal as doing even better than expected.
Answer:
WACC = ke(E/V) + Kd(D/V)
WACC = 15(0.40) + 9(0.60)
WACC = 6 + 5.4
WACC = 11.4%
Explanation:
WACC is a function of cost of equity multiplied by the proportion of equity in the capital structure plus cost of debt multiplied by the proportion of debt in the capital structure. The proportion of equity in the capital is expressed as E/V (0.40) while the proportion of debt in the capital structure is expressed as D/V (0.60).
Answer:
The correct answer to the following question is option (II), (III), (IV).
Explanation:
The APT stands for Arbitrage pricing theory, which is the alternative to the CAPM (Capital Asset Pricing Model ) for explaining the returns of the portfolio or the assets.
It is the multiple factors of CAPM which is base on the idea that the returns of assets can predict by using linear relationships in between a number of the macroeconomics variables that capture the systematic risk and the asset's expected return.
