Question: Module 2. Basic Concepts in finance 1. What is the definition of risk? Discuss the relationship of risk with uncertainty. 2. Which are the different

Module 2. Basic Concepts in finance 1. What is the definition

Module 2. Basic Concepts in finance 1. What is the definition of risk? Discuss the relationship of risk with uncertainty. 2. Which are the different levels of decision in risk management? Be able to give examples and identify the different level of decision in real examples. Be able to discuss the implications of the differentiation in different levels of decision. 3. What is the valuation principle? Why is it important? Examples 4. What makes entrepreneurial finance and interdisciplinary field? Examples, implications. 5. What is the basic principles in different risks stemming from different sources? 6. Is risk subjective to different views and why? Examples, implications. 7. What is the misconception of the risk-reward relationship? What is the role and the ultimate goal of the decision maker? Examples, implications. 8. What is the route of subjectivity in risk analysis and decision making? Examples, implications 9. What is the meaning of probability in relation to investment decision? How the decision maker can mitigate uncertainty. 10. What is the law of one price? Give examples of arbitrage

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