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    Investments opportunities Techniques to Evaluate Risks

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    What techniques can be used to evaluate risks associated with different investment opportunities?

    © BrainMass Inc. brainmass.com April 1, 2020, 3:33 pm ad1c9bdddf
    https://brainmass.com/business/investments-in-securities/investments-opportunities-techniques-evaluate-risks-201461

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    Please find my response below.

    There are different ways to evaluate risks associated with different investment opportunities. One way to evaluate risk is to compare the volatility in cash flows of that investment with other investment opportunities. More the volatility, more the risk. This volatility can be measured using standard deviation of historic returns or of comparable projects. This standard deviation serves as a way to evaluate risk of ...

    Solution Summary

    The solutions discusses the techniques that can be used to evaluate risks associated with different investment opportunities.

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