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What are some risk management techniques?

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What are some risk management techniques? How would you use portfolio management to assess the risk and return of an investment? Predict how the results would be different based on different risk preferences?

What is a sensitivity analysis? What is a scenario analysis? How would you apply each one to a potential investment opportunity? How would you use the information from this analysis? Explain.

What is a limited liability corporation? What is a limited liability partnership? What are the differences? What are the advantage and disadvantanges of each?

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Risk management techniques are defined. Sensitivity and scenario analysis is examined for investment opportunities.

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What are some risk management techniques? How would you use portfolio management to assess the risk and return of an investment? Predict how the results would be different based on different risk preferences?

In the world of finance, there are a lot of ways to minimize or manage risk. Having insurance is one of the best and quickest ways to manage risk should some contingency arise. Other common techniques would be hedging, financial ratio analysis, and portfolio diversification. The most common portfolio management risk management technique is to diversify investments to between stocks, bonds, mutual funds, index funds, or commodities. I, personally, enjoy hedging risk by placing stop losses on investments to ensure I do not exceed my risk tolerance when investing in stocks, puts, calls, or other investment instruments. In the case of insurance, the results would be different because there isn't a total loss on an asset because there was a monthly ...

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Keonda Grant-Taylor, MBA
Education
  • Doctorate of Management in Organizational Leadership, University of Phoenix - Online
  • MBA, Webster Univeristy
  • Dual BS Degrees, University of South Carolina
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