Assignment 2: Risk Analysis
All businesses have associated risks. Businesses must cope with risk in order to operate. The risks can be minimized when you are certain of the outcome and can be maximized when there are uncertainties. The internal and external factors also impact risk. With all other factors held constant in financial markets, the higher the risk associated with the decision, the higher the expected return. Many investors are risk averse especially when dealing with their investments.
In this assignment, you will discuss risks and risk aversion. You will also explore your natural risk tendencies and discuss how you would react to specific financial decisions that you may encounter, personally and professionally.
Complete the following:
In 300 words or less explain why the weighted average cost of capital is important to managers, investors, and creditors of the company.
Write a 2–3-page research paper. Apply APA standards to citation of sources.
|Assignment 2 Grading Criteria||
|Demonstrated proficient understanding of risk and risk aversions addressing tasks posed in the assignment.||
|Discussed the concept of risk by assessing relevant information, diagnosing underlying causes, considering and evaluating possible alternatives, and determining and defending an appropriate, well-reasoned, and creative solution or course of action.||
|Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; displayed accurate spelling, grammar, and punctuation.||