Why Bother with Shareholder Value or a Stakeholder Scorecard? Isn't

question 8

Essay

Why bother with shareholder value or a stakeholder scorecard? Isn't it simpler to evaluate a corporation and its SBUs just by using standard measures such as ROI or earnings per share?

Understand Freud's concepts of the id, superego, and ego, and how these contribute to the development of the self.

Understand the concept of currency appreciation and depreciation.

Explain the balance of payments and its components.

Describe the impact of changes in exchange rates on imports and exports.

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Definitions:

Covariance Risk

The degree to which two assets' returns move in relation to each other, indicating the risk inherent in holding the assets together in a portfolio.

Systematic Risk

The risk inherent to the entire market or market segment, often referred to as market risk, which cannot be eliminated through diversification.

Coefficient of Variation Risk

A statistical measure used to assess the risk of an investment by calculating the ratio of the standard deviation to the mean return, indicating variability in relation to the expected return.

Unsystematic Risk

Also known as specific risk, it refers to the risk associated with individual assets, distinct from the market's overall movements.