7 Answered Questions for the topic Risk
High-risk investing is better for the young? Why?
I have heard statements such as the question's time. Basically, it's a financial motto: "If you're young, take on more risk." I don't really understand it. I figured risk-tasking is a... more
How to calculate budget margin?
Say a work package (containing several tasks) is estimated to take between 320 (Most likely) and 480 (Worst case) hours of work (not duration) to complete. Because of some dependencies and the... more
How do you plan for risks in your project's estimates?
I have been working on the risk-management topic in software development for a while. According to the different literature there could be knowns knowns (typical risks), known unknowns (product... more
What are alternative measures of risk?
In finance, the variance of the returns of a security are used as a proxy for the associated risk of the security. I've seen some books include sentences like "if you take variance as a measure of... more
When does gambling reduce risk?
Suppose that you face risk. It is obvious that taking gambles whose outcomes are negatively correlated with the outcomes of your other gambles can reduce your overall risk ('hedging'). My question,... more
Need help. Show work.
On an American roulette wheel, there are 18 red numbers, 18 black numbers, plus 2 green numbers (0 and 00). If you bet $N on red, you win $N if a red number comes up (i.e., you get $N back - your... more