Risk Diversification

MCBFI – JUL 2020 – L4 – Q6 – Differences Between Investing in Shares and Collective Investment Schemes

Compare and contrast the differences between investing in shares and collective investment schemes, in the context of individual investor preferences.

Question

Yevugah belie’es the stock market can rvork *onders for him. Ho\rever. Nii Kotey Kotei is 55 -ycars old and also belie’es that collectivc lnvestnent Schemcs are far berter than sharcs. compare a1ld contrasts the diiferences between in’esting in shares and coilective Investment Schemes.

Answer

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Tags: Collective Investment Schemes, Costs, Investment Comparison, Liquidity, Professional Management, Returns, Risk Diversification, Shares, Stock Market
Level: Level 4

Topic: Equity, Investment Analysis, Quoted Equity Transactions, Valuation of Capital Market Instrument
Series: JULY 2020

CSME – Nov 2015 – L2 – Q1b – Risk Management and Corporate Strategy

Discusses various methods for managing and controlling risks in an organization, illustrating different risk management techniques.

Question

There are different methods of managing and controlling risks. Explain and illustrate any THREE of the following approaches to risk management:
i. Risk Diversification
ii. Risk Transfer
iii. Risk Sharing
iv. Risk Hedging (15 Marks)

Answer

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Tags: Credit risk, Risk Diversification, Risk Hedging, Risk Sharing, Risk Transfer
Level: Level 2

Topic: Risk Management and Corporate Strategy
Series: NOV 2015

CSME – May 2022 – L2 – SC – Q5 – Risk Management and Corporate Strategy

Advise on investment strategies to minimize risks and explain factors determining risk appetite.

Question

a. A friend of yours who recently lost his job came to you for advice on how to invest his life savings in a way that will minimize the risk of loss of capital.

i. Advise him on how risk of losses could be minimized using the following:
1. Risk Diversification (1 Mark)
2. Risk Transfer (1 Mark)
3. Risk Sharing (1 Mark)
4. Risk Hedging (1 Mark)
5. Risk Avoidance (1 Mark)
ii. Explain to your friend when risk diversification is the best option for him. (4 Marks)

b. What is risk appetite? Explain THREE factors that determine the risk appetite of a company. (6 Marks)

Answer

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Tags: Risk Avoidance, Risk Diversification, Risk Hedging, Risk Sharing, Risk Transfer
Level: Level 2

Topic: Risk Management and Corporate Strategy
Series: MAY 2022

MCBFI – JUL 2020 – L4 – Q6 – Differences Between Investing in Shares and Collective Investment Schemes

Compare and contrast the differences between investing in shares and collective investment schemes, in the context of individual investor preferences.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Collective Investment Schemes, Costs, Investment Comparison, Liquidity, Professional Management, Returns, Risk Diversification, Shares, Stock Market
Level: Level 4

Topic: Equity, Investment Analysis, Quoted Equity Transactions, Valuation of Capital Market Instrument
Series: JULY 2020

CSME – Nov 2015 – L2 – Q1b – Risk Management and Corporate Strategy

Discusses various methods for managing and controlling risks in an organization, illustrating different risk management techniques.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Credit risk, Risk Diversification, Risk Hedging, Risk Sharing, Risk Transfer
Level: Level 2

Topic: Risk Management and Corporate Strategy
Series: NOV 2015

CSME – May 2022 – L2 – SC – Q5 – Risk Management and Corporate Strategy

Advise on investment strategies to minimize risks and explain factors determining risk appetite.

Question

a. A friend of yours who recently lost his job came to you for advice on how to invest his life savings in a way that will minimize the risk of loss of capital.

i. Advise him on how risk of losses could be minimized using the following:
1. Risk Diversification (1 Mark)
2. Risk Transfer (1 Mark)
3. Risk Sharing (1 Mark)
4. Risk Hedging (1 Mark)
5. Risk Avoidance (1 Mark)
ii. Explain to your friend when risk diversification is the best option for him. (4 Marks)

b. What is risk appetite? Explain THREE factors that determine the risk appetite of a company. (6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Risk Avoidance, Risk Diversification, Risk Hedging, Risk Sharing, Risk Transfer
Level: Level 2

Topic: Risk Management and Corporate Strategy
Series: MAY 2022

Question Tag: Risk Diversification

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MCBFI – JUL 2020 – L4 – Q6 – Differences Between Investing in Shares and Collective Investment Schemes

Compare and contrast the differences between investing in shares and collective investment schemes, in the context of individual investor preferences.

CSME – Nov 2015 – L2 – Q1b – Risk Management and Corporate Strategy

Discusses various methods for managing and controlling risks in an organization, illustrating different risk management techniques.

CSME – May 2022 – L2 – SC – Q5 – Risk Management and Corporate Strategy

Advise on investment strategies to minimize risks and explain factors determining risk appetite.

MCBFI – JUL 2020 – L4 – Q6 – Differences Between Investing in Shares and Collective Investment Schemes

Compare and contrast the differences between investing in shares and collective investment schemes, in the context of individual investor preferences.

CSME – Nov 2015 – L2 – Q1b – Risk Management and Corporate Strategy

Discusses various methods for managing and controlling risks in an organization, illustrating different risk management techniques.

CSME – May 2022 – L2 – SC – Q5 – Risk Management and Corporate Strategy

Advise on investment strategies to minimize risks and explain factors determining risk appetite.

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Question Tag: Risk Diversification

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MCBFI – JUL 2020 – L4 – Q6 – Differences Between Investing in Shares and Collective Investment Schemes

Compare and contrast the differences between investing in shares and collective investment schemes, in the context of individual investor preferences.

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CSME – Nov 2015 – L2 – Q1b – Risk Management and Corporate Strategy

Discusses various methods for managing and controlling risks in an organization, illustrating different risk management techniques.

You're reporting an error for "CSME – Nov 2015 – L2 – Q1b – Risk Management and Corporate Strategy"

CSME – May 2022 – L2 – SC – Q5 – Risk Management and Corporate Strategy

Advise on investment strategies to minimize risks and explain factors determining risk appetite.

You're reporting an error for "CSME – May 2022 – L2 – SC – Q5 – Risk Management and Corporate Strategy"

MCBFI – JUL 2020 – L4 – Q6 – Differences Between Investing in Shares and Collective Investment Schemes

Compare and contrast the differences between investing in shares and collective investment schemes, in the context of individual investor preferences.

You're reporting an error for "MCBFI – JUL 2020 – L4 – Q6 – Differences Between Investing in Shares and Collective Investment Schemes"

CSME – Nov 2015 – L2 – Q1b – Risk Management and Corporate Strategy

Discusses various methods for managing and controlling risks in an organization, illustrating different risk management techniques.

You're reporting an error for "CSME – Nov 2015 – L2 – Q1b – Risk Management and Corporate Strategy"

CSME – May 2022 – L2 – SC – Q5 – Risk Management and Corporate Strategy

Advise on investment strategies to minimize risks and explain factors determining risk appetite.

You're reporting an error for "CSME – May 2022 – L2 – SC – Q5 – Risk Management and Corporate Strategy"

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