1 page/≈275 words
Business & Marketing
FMA-VI 2 of 2: Measures of risk and its relation to business models (Essay Sample)
Measures of Risk. Address each source of risk that is measured and relate it to two models addressed in this unit. Your response should be at least 250 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. Course Textbook Lasher, W. R. (2011). Practical financial management (6th ed.). Mason, OH: South-Western.  Chapter 9 source..
Measures of risk and its relation to business models
Risk in business is a term given to the unforeseen circumstances that may have a negative impact on the operation and success of a company. It can result from internal factors as well as some external factors in the business community. Even though negative, it’s inherent to performance. As risk is uncertain, it is prudent to learn tools of measuring risk and managing it.
Models of measuring risk give different results. Standard deviation is a model that is based on the volatility of returns. More diverse investments pose a high risk. Different deviations though give an increasing level of reliability. For instance, if the standard deviation of a stock is 21% with an annual return...
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