Question

financial management

What are some techniques you can use to evaluate projects? How do we assess and adjust for risk? How do all of these tools allow us to find true value as financial managers? minimum of 300 words.

Answer 1

Answer:

Risk adjusted performance is calculated by taking the return of investment, subtracting the risk free rate and dividing this result by the investment's standard devation. All else equal a higher sharpe ratio is better. The standard deviation shows the volatility of invetment's return relative to average return.

Risk adjustment is a method to offset the cost of providing health insurance for individuals-such as those with chronic conditions-wo represnet a relatively high risk to insurers. The risk score is a relative measure of the probable costs to insure the individuals.

Risk assesment is the term used to describe the overall process or method where you, identify hazards and risk factor that have the potential to cause harm, analyze and evaluate risk associated with the hazard (risk analyssis and risk evaluation).