"ou have determined that your risk tolerance is 90. Calculate your utility for the following payoffs: (Rour places.) Payoff Utility 13 23 45
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- A. A company wants to produce a souvenir with a marketing life of six months. Uncertainty surrounds the likely sales volume as well as the fixed costs of the venture as shown below: Sales units Probability Contrn. /unit Probability Fixed cost K7 K5 100 000 0.3 80 000 0.6 60 000 0.1 1.0 0.5 0.5 1.0 Determine the expected value of the contribution K400 000 K450 000 K500 000 Probability 0.2 0.5 0.3 1.0You are a risk manager of a school bus company in Hong Kong, your boss owns over 1,000 school buses. During COVID 19, almost all the school buses parked in no covered car park every day because students no need to be back to school. Your boss is considering a partial retention program for physical losses to the school buses. a) Identify the factors that your company should consider before it adopts a retention program for physical damage losses to school buses. b) If a retention program is adopted, what are the various methods you can use to pay for physical damage losses to school buses? c) Identify two risk-control measures that could be used in your company’s retention program for physical damage lossesWhat is conditional value at risk, CVaR?
- 33. In the early stages of a Risk Assessment, one must consider what when picking a subject of study: a Scope of the problem/issue b The extent of the risk to humans c The probability of exposure d Funding opportunitiesHow do I get the 0.20 for probability in excel?3. The manager for a manufacturing company must recommend whether to construct a large plant, construct a small plant or do nothing. He estimates the long-run profits in $ as follows: State of Nature Alternative Good Average Poor Market($) Market ($) Market ($) Construct a 100,000 35,000 -60,000 large plant Construct a 75,000 25,000 -40,000 small plant Do nothing -5,000 0 0 Probability 25% 50% 25% Solve using: A. Expected Opportunity Loss B. Expected Value of Perfect Information
- Which of the following losses or outgoings incurred cannot be deducted as a general deduction by a share investor: Group of answer choices Interest on money borrowed to buy shares expected to produce dividends, Investment journals and publications. Investment journals and publications. Subscriptions to share market information services. Management fees or retainers to investment advisers for an initial investment plan. Management fees or retainers to investment advisers for ongoing investment advice.Hh1. Account Choose the stakeholder that is MOST likely to ask the following question. Will the business be able to pay for its purchases on time? Select one: a. Canada Revenue Agency management of a retailer b. c. business owner d. lender (e.g. banker) e. supplier (e.g. a wholesaler) f ou mor4. "Family Man," a construction company, is considering whether to bid on a contract for a new housing complex. The cost of preparing a bid USD 200,000. “Family Man" has a 0.8 probability of winning the contract, if it submits the bid. If "Family Man" wins the bid, it has to pay USD 2000,000 to be a project partner of the project. As per the usual practice, "Family Man" will then consider consulting a market research firm "Marquess" to conduct a market survey to forecast the demand of housing complex before beginning the construction. "Marquess" charges a fee of USD 150,000. Now, the demand scenario can be either "High demand" or "Low demand." "Family Man" gets a revenue of USD 5000,000 and USD 3000,000 in case of "High demand" and "Low demand" scenario, respectively. On the other hand, instead of construction, "Family Man" has a provision of selling its project rights to another project partner construction company at the price USD 3500,000. As per the historical data, "Marquess"…
- Scenarios for Risk Management in Capex Decisions3. An organization decides to assess the impact of its suppliers' failure to meet delivery dates, as well as late payment of their bills on time. by customers or other debtors. This analysis seeks to assess a type of risk: Select one: a.Unpredictable. b.Inherent. c.prevailing. d.Intangible.113 A balloon payment can be risky for a consumer if the property value falls or: A) the consumer falls to maintain the property. B) the consumer has had more than two x 30- day late payment. C) the consumer's financial condition declines. D) the consumer's credit score drops below the score used to approve the loan.