Differentiate between (a) Stand-alone risk (b) Risk in a portfolio context. How are they measured, and are
Question:
(a) Stand-alone risk
(b) Risk in a portfolio context. How are they measured, and are both concepts relevant for investors?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 46% (13 reviews)
Standalone risk is the risk faced by an investor who holds just one asset versus the risk inherent i...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Corporate Finance questions
-
How is market risk measured for individual securities? How are beta coefficients calculated? Assume that you recently graduated with a major in finance, and you just landed a job as a financial...
-
Differentiate between time risk and risk conditions.
-
Differentiate between individual investors and institutional investors.
-
Suppose the European Parliament is considering legislation that will decrease tariffs on agricultural products imported from the United States. The benefit of the tariff reduction is estimated at 5...
-
A box in a supply room contains 15 compact fluorescent lightbulbs, of which 5 are rated 13-watt, 6 are rated 18-watt, and 4 are rated 23-watt. Suppose that three of these bulbs are randomly selected....
-
Date U.S. Dollar per Canadian Dollar September 1, Year 1 $0.75 December 31, Year 1 0.73 March 1, Year 2 0.71 Prepare journal entries for the option fair value hedge and the firm commitment and detail...
-
Figure 11.65 presents the PFD of a process for the recovery of methane from a feed stream consisting of \(75 \%\) methane and \(25 \%\) nitrogen. The process feed is first cooled from 90 to...
-
Certain wood stove designs rely exclusively on heat transfer by radiation and natural convection to the surroundings. Consider a stove that forms a cubical enclosure, Ls = 1 m on a side, in a large...
-
You borrow $150,000 today (t=0) at 14% APR with quarterly compounding. You make equal semi-annual payments back to the lender starting 6 months from now (t=1), up to and including 10 years from now....
-
A bakery wishes to display seven of its 14 types of cake in a row in its shop window. There are six types of sponge cake, five types of cheesecake and three types of fruitcake. Find the number of...
-
1. What is a financial option? What is the single most important characteristic of an option? 2. What is put-call parity? Assume that you have just been hired as a financial analyst by Triple Trice...
-
Can an investor eliminate market risk from a portfolio of common stocks? How many stocks must a portfolio contain to be reasonably well diversified? Do all portfolios with, say, 50 stocks have about...
-
The demand equation for a certain commodity is 0 x 60. Find the value of x and the corresponding price p that maximize the revenue. P 1 12 - 10x + 300,
-
Using a meterstick, a student measures a length and reports it to be 0.8755 m. What is the smallest division on the meterstick scale?
-
The only SI standard represented by material standard or artifact is the (a) meter, (b) kilogram, (c) second, (d) electric charge.
-
The cover of your physics book measures 0.274 m long and 0.222 m wide. What is its area in square meters?
-
The prefix micro- means (a) 106, (b) 106, (c) 103, (d) 103.
-
Which of the following is the SI base unit for mass: (a) pound, (b) gram, (c) kilogram, or (d) metric ton?
-
Consider once more the situation in Problem 3. Explain two policies that do not involve a fee that could result in the optimal level of effort. What complications might arise in the administration of...
-
Solve for the equilibria of the following discrete-time dynamical systems Pr pt+1 = Pr+2.0(I-Pr)
-
Why should the general conditions be estimated in detail rather than using a percentage of the project costs?
-
The Bahbat Carpet Company has grown rapidly during the past 5 years. Recently, its commercial bank urged the company to consider increasing its permanent financing. Its bank loan under a line of...
-
Captain Whitman Ship Supplies offers terms of 3/15, net 45. a. If a purchaser takes the discount and pays on the 10th day, what is the nominal cost of trade credit? b. Now suppose a purchaser...
-
Payne Products had $1.6 million in sales revenues in the most recent year and expects sales growth to be 25% this year. Payne would like to determine the effect of various current assets policies on...
-
The income statement of Sundas company shows that the total sales amount is $200,000, a net income of $10,000, and an EBIT of $20,000. The company's balance sheet notes that the total assets set at...
-
Queenie wants to borrow money for some home improvements. He has received several different quotes. Bank A will charge him 14.5% compounded annually, Bank B will charge him 14% compounded monthly,...
-
The value of total assets in Valera inc company equals to 100,000. The balance sheet of the company documents the following values: fixed assets of 50,000, long term liabilities of 20,000, current...
Study smarter with the SolutionInn App