RISK AND UNCERTAINITY IN THE DECISION MAKING 1. Introduction Risk is everywhere. It is not hard to find risk. In almost every thing that we do and situations we face‚ there is a corresponding risk behind it. However‚ we cannot just run from it. All we can do to move forward is to manage this risk‚ or if not‚ at least lessen the risk involve. We can never tell what will happen unless we try to overcome it. Whether we like it or not‚ the world is such an unpredictable place. Moreover‚ as long
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(-2 ≤ Z ≤ 2) where Z is a random variable distributed N(0‚1) (e) None of the above. The risk that many borrowers in a particular foreign country fail to repay their loans is: (a) Credit risk. (b) Country risk. (c) Currency risk. (d) Liquidity risk. (e) Interest rate risk. Provide the most correct term(s) to complete the following sentences: The risk that the failure of one or more troubled financial institution could trigger the contagious collapse of otherwise healthy financial
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Ratio Analysis Ratio analysis is one of the techniques of financial analysis where ratios are used as a yardstick for evaluating the financial condition and performance of a firm. Analysis and interpretation of various accounting ratios gives skilled and experienced analyst a better understanding of the financial condition and performance of the firm than what he could have obtained only through a perusal of financial statements. Types of ratio’s 1. Profitability ratio 2. Leverage ratio
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| 2 | 4.1 Vertical analysis 4.2 Horizontal analysis | 23 | 4. Key ratios analysis | 4 | 5. Share issues | 5 | 6. Conclusion | 5 | 7. Bibliography | 6 | Table of Appendixes 1. Income statement – Horizontal and vertical analysis | 2. Statement of financial position – Horizontal and vertical analysis | 3. Ratio analysis - Liquidity and Profitability | 4. Ratio analysis – Efficiency and Investment | 5. FTSE 100 Index – weekly share prices
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Conduct a SWOT analysis and list out the strengths‚ weaknesses‚ opportunity and threat faced by IGB Corp Berhad fron the case above. i. Strengths Predictable profit Enhance liquidity - In build and sell IGB is more likely to own assets whereby by implementing recurring income approache IGB will improve in its liquidity and it will give a positive perception of the company by the investors. This may allow IGB to be more able to invest in other possible business with the hard cash in their bank
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institution is exposed to. This requires having a structure in place to look at risk interrelationships across the organization. The risks can be broken into six generic types:- Market or systematic risk Credit risk Counterparty risk liquidity risk operational risk legal risks Credit risk This risk arises from non-performance by a borrower. It may arise from either an inability or an unwillingness to perform in the pre-committed contracted manner. This can affect the lender
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day). 4).List and define the three main types of risk a trading organization faces. The three main types of risk a trading organization faces are: Market risk‚ credit risk and operational risk. Market risk: It’s a combination of price risk‚ liquidity risk and volume risk. Credit risk: The risk of loss of principal or loss of a financial reward stemming from a borrower’s failure to repay a loan or otherwise meet a contractual obligation. Operational risk: the risk of loss resulting from inadequate
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Coursework Ratio Analysis of Tesco and Sainsbury Introduction This report details the results of a ratio analysis of two of the largest retailers in the UK: Sainsbury and Tesco based on their audited financial statements for the financial years ending 2011‚ 2012‚ and 2013. The two companies are compared with each other based on their profitability and liquidity ratios. This report then critically interprets the results of the ratio analysis calculations and then discusses the weaknesses of ratio analysis
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DF * A system of trading money which: * provides a safe place to save excess cash‚ known as deposits. Marketing of Banking Services * Bank marketing is the aggregate of functions‚ directed at providing services to satisfy customers financial (and other related) needs and wants‚ more effectively and efficiently than the competitors keeping in view the organizational objectives of the bank.” Importance of Marketing of Banking Services * The existence of the bank has
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operation; for instance‚ interest rate risk‚ credit risk‚ liquidity risk and operation risk. This essay will focus on the liquidity risk problem in bank and regulation countermeasure of liquidity risk. Regulators improved level of risk management after global financial crisis; therefore‚ the Basel Banking Supervision Committee put forward new principle to reduce bank risk. The key finding is new regulation from BaselⅢ to manage liquidity risk in this essay. Introduction In recent years‚ banks
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