Explain the return and risk relationship concept in finance.

PART C

Explain the return and risk relationship concept in finance. Describe a situation whereby a department’s attitude is: Risk Neutral, Risk Adverse, and Risk Seeking. Explain and critically analyse the distinction between Decision tree, Expected value and Maximax, Maximin and Regret criterion can be used for decision-making under conditions of risk and uncertainty. The managing director of Bounce Ltd. has asked you to explain how each method of the above can be applied in decision-making and comment on the strengths and limitations of each method. (25 marks) Presentation – marks will be awarded for producing a professional report (suitable for use in a business situation such as that described above). (5 marks) [Part C Total 30 Marks] Further assignment information SUBMISSION GUIDELINES: WORD LIMIT Your report should be of no more than 1,500 words in length (excluding calculations). This is the maximum limit. Your report should also be appropriately referenced, where applicable, with marks for referencing being included within the professional report marks indicated above. Note that the executive summary, appendices and the list of references are not included in the word count for the report. You must state your word count on your title page. Your report should be word processed & submitted via TURNITIN system and should clearly state the names and student numbers of each member of the group. Failure to submit via TURNITIN will result in a Fail Assignment. Please note that for a group assignment, such as this, only ONE member of the group should submit a copy of the assignment on TURNITIN. Assessment criteria for this assignment are indicated by the mark allocation in the requirements provided above. Assessment Regulations There is no right to repeat a failed element of coursework. There will be penalties imposed for the late submission of coursework without permission which will only be given by Dr Frank Kwabi on the receipt of written evidence and an appropriately completed form (blank forms available from the Business School Office). These penalties are as follows; Up to 5 working days late without permission. Maximum Mark 40% More than 5 working days late without permission: FAIL.