Based on the information provided in the article, the four (4) categories of risk explained include the following:
- <u>Market risk</u><u>:</u> this is a risk that limits the ability of an investment to increase in value, thereby, leading to loss of money in the long-run.
- <u>Financial or business risk:</u> it describes the risk that is associated with investing an amount of money in a private business, so as to gain a lot of profit in the long run.
- <u>Inflation risk:</u> it describes the risk that is associated with a lower rate of return due to a higher rate of inflation, when an amount of money is invested.
- <u>Fraud risk:</u> it describes the risk that is associated with investing an amount of money in a product, stock, company, etc., without doing a background check or due diligence.
<h3>What is risk management?</h3>
Risk management can be defined as a strategic process which involves the identification, evaluation, analysis and control of potential threats (risks) that are present in a business, project, or system, as an obstacle to its capital, revenues, success, and profits.
Based on the information provided in the article, the four (4) categories of risk explained include the following:
- <u>Market risk</u><u>:</u> this is a risk that limits the ability of an investment to increase in value, thereby, leading to loss of money in the long-run.
- <u>Financial or business risk:</u> it describes the risk that is associated with investing an amount of money in a private business, so as to gain a lot of profit in the long run.
- <u>Inflation risk:</u> it describes the risk that is associated with a lower rate of return due to a higher rate of inflation, when an amount of money is invested.
- <u>Fraud risk:</u> it describes the risk that is associated with investing an amount of money in a product, stock, company, etc., without doing a background check or due diligence.
Read more on risk here: brainly.com/question/16352505
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P(not 3)=5/6 this is the correct answer
Answer:
Expand the polynomial using the FOIL method.
a
^2
+
a
−
6
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Answer:
D
Step-by-step explanation:
The answer is D
hope this helps :)
Answer:
7%
Step-by-step explanation:
Step one:
given data
The original cost of Sam’s investment is $10,000
Sam calculated his real return to be $10,700
Required:
the interest made from the investment is
10700-10000= $700
Step two:
The ROI is a percentage that tells us the interest made
interest/investment*100
=700/10000*100
=0.07*100
= 7%
The ROI is 7%
