Purchase Solution

Degree of Risk for a Project

Not what you're looking for?

Ask Custom Question

What degree of risk do you believe should be taken for a project? Should there be a % cap rate, or bottom line value, or what?

Purchase this Solution
Solution Summary

Should there be a % cap rate, or bottom line value, or what?

Solution Preview

The best way to understand project risk is to characterize it by describing the range of possible outcomes, estimating when they could occur (risk timing), and assessing probabilities. Whether we are aware of it or not, all projects have some degree of risk or ...

Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

View More Free Quizzes
Related BrainMass Solutions

  • meaningfully manage risks in project management

    It is certainly possible to meaningfully manage risks in project management upto a very high degree by engaging in proactive risk management planning for the project.

  • expand for the enterprise-level project

    After such a list is draw and risks have been identified, the next step is to assign rating, let's say on a scale of 1-10, to the risks in order to ascertain the degree of importance of each risk or the probability of occurence of various risks.

  • When the greatest portion of a firms' assets are fixed rather than variable

    When the greatest portion of a firms' assets are fixed rather than varible, the firm has a higher Operating Leverage, which measures the degree to which a firm or project relies on fixed rather than variable costs.

  • Standard Deviation and Foreign Exchange

    300255 Standard Deviation and Foreign Exchange Need help with understanding each of these questions. The standard deviation statistic measures the degree of movement for EACH currency. Is this true or false.

  • Cost of Capital, Leverage Questions

    Project B, which is a less-than-average risk, will produce net cash flows of $196,000 in years 3 and 4 only. What should Jones do? 44.) Ajax, Inc. has common stock outstanding that has a market price of $48 per share.

  • Key Finance Risks Associated with Investment Alternatives

    For our current purposes, we can classify the risk of a firm into two types: business risk and financial risk. - Business risk is the riskiness of the firm without debt, which is due to the uncertainty associated with the firm's cash flows.

  • WACC and factors influences a company's WACC

    Hence different project having different risk levels should have different discount rate. This is because of difference in risk premium as discussed above. For example project rate adjusted upward as the investment becomes riskier.

  • Capital Budget Analysis and Risk

    You quantify risk by measuring the firm's risk, the stand alone risk of the project, and the overall portfolio risk.

  • Discussing the Finance Details of a Foreign Project

    A higher degree of relation between the foreign economy and the domestic economy would lower the cost of capital due to closer ties and ease of business operations as compared with a lower degree of relation between the foreign economy and the domestic

View More Related Solutions