Risk is the possibility of not getting expected result of something. So there is risk for everything. So without getting risk you can do nothing. But there are some ways to reduce the risk.
01. Take the risk.
This is most suitable for the people who love risk. This is the option with highest risk.
02. Manage risk
In this, risk taker calculate the possible risk and find ways to reduce that risk. When you managing your risk, you should have to measure possible risk in the future.
03. Shifting risk
This option is the way that mostly use in currently. By shifting your risk, you shift your risk to another party like 'Insurance Company'. Than if the risk is happened the other party will take that risk for you. But there is some cost. So before shifting that risk you should know that risk is more worth than the cost.
04.Avoid risk
Like I mentioned before there is nothing without risk. But there is only one way to fully avoid the risk. That is not doing the thing that give you the risk. That is the only way.
So, those are ways of handling the risk. As mentioned in the equation don't ever risk more than you can handle unless that risk is more worth than that. Because that risk could give you opportunities that you cannot ever get in your life. But you can mange that risk.
So, what is your opinion? What is the best way of handling the risk? <span />
Answer:
A
Explanation:
To answer the question, we look at an extreme scenario of 0% interest rate and see the minimum repayment Jade will make on the loan taken
Therefore,
Interest Rate = 0%
This means that the loan to be paid will be calculated as follows
Monthly payments x 12 Months x 14 Years
= $195 x 12 months x 14 years = $32, 760
The meaning of this outcome is that the lower the interest rate to be paid, the higher the size of the loan, because at 2.9% the loan= $26,898.98 and at 0% rate the loan= $32, 760.
The conclusion therefore is a 2.7% interest rate which is lower than 2.9% but not as low as the extreme 0% will cause the loan amount to be higher than $26,898.98. This affirms option A.
Options B and C are wrong because 2.5% and 2.3% are lower than 2.9%, therefore, the loan amount will be higher. Option D is also wrong because a 3.1% interest rate is higher than 2.9%, therefore, the amount should be lower not higher than $26,898.98
Answer:
The <u>eclectic paradigm</u> argues that combining location specific assets or resource endowments and the firm's own unique assets often requires FDI.
Answer:
The bond has a 2 percent coupon and a face value at issuance of $1000 which is the same with the Treasury inflation-protected bond. However, the reference Consumer Price Index (CPI) which is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services has increased from 202.34 to 203.18. From this deduction, what I know for certain about this bond is that the interest payment have increased and the coupon rate is still 2 percent.
