Featured
- Get link
- Other Apps
Risk Meaning
Broadly -Risk is uncertain . Risk is everywhere and very volatile which cannot be predicted .
In Finance terms , where there is risk there is always return.
When you start a start up there is high risk and has high chances of getting return .
They both are related to each other .
Risk is volatile and therefore it is said higher the risk higher the return and vice versa.
More volatile returns are , higher is risk associated with investment .
Risk and return have direct relationship with each other.
The diagram has Y axis return and X axis Risk and a horizontal line started from 0 which shows high risk - high return , Low risk - low return.
Role of Venture Capitalist and Private Equities ?
In shark tanks people invest in start ups so they take risk by investing , not just returns of principal plus interest but more
What is Return ?
-Additional gains you get by investing . Profits from investment .
-Gain expected by investor from investment .
- Return can be in the form of dividend and capital gains.
R= I+(P1-P2)/P2
P1= Price of security
P2= Purchase Price of Security
I= Cash Flow ( Dividend or Interest)
Identification of risk
- Prevent the program
-Quick and constant identification of events
-To match the type of verification required to maintain risk informed decision making.
- If not identified may have severe impact
-To understand the risk within the background and to generate a scenario of risk based on threats and events that might prevent.
- Get link
- Other Apps
Comments
Post a Comment