Question

What does the term performance mean? Expected performance?

b. What does the term risk mean?

c. Can the risk be completely eliminated? Why?

d. In the financial securities market, how can the level of risk be minimized?

and. What does variability mean within corporate finance?

F. What does the concept of diversification mean within corporate finance? What is its application within a global stock market?

Answer 1

Answer:-

a) Performance-Art of doing work with accuracy, Result of an activity is known as performance.

Expected Performance-Expectation when compared with standard benchmark set for comparison purpose.

Comparison with Goal vis-a-vis actual performance.

b) Risk- Incident of not happening what was expected to happen is known as Risk.

c) No, Risk can't be completely eliminated, however its negative or adverse effect can be minimized by taking some mitigants or diluting it by some proper task.

d) In the financial securities level of risk can be minimized by taking following steps

>>taking appropriate and necessary action at the correct time.

>>Study market fundamamentals