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Management of business firms Name Institution Professor Course Date Risk-return relationship refers to the uncertainties in businesses in relation to the outcome or earning of the business profits (Collins 2016). Basically it has being noted that low levels of uncertainty are connected to low income or profit of any given business. On the other hand high levels of risks are linked to high returns of the portfolio in businesses or enterprises (Ayres 2016). However there are some exceptions where the high level of income is not associated with a huge number of risks involved. Therefore it is not view the above concepts. In addition they are needed to strive hard in minimizing the risks without affecting the returns of the businesses. At the same time they need to manage the working capital investment so as to avoid collapsing of their businesses. References Ayres R. (2016). New Perspectives on Capital Work and Wealth. In Energy Complexity and Wealth Maximization (pp. 423-483). Springer International Publishing. www.academia.edu Collins P. J. (2016). Annuities and Retirement Income Planning. Research Foundation Briefs 2(2) 1-19. www.pewtrusts.org Smimou K. (2014). International portfolio choice and political instability risk: A multi-objective approach. European journal of operational research 234(2) 546-560. http://macro.soc.uoc.gr/docs/Year/2008/paper_3_89.pdf [...]
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What is the risk-return relationship involved in the firm’s asset-investment decisions pertaining to working capital management? Why are these concepts important to business leaders in Saudi Arabia? Search the SEU library or the internet for an academic or industry-related article. Select an article regarding risk-return or working capital management, and the relationship to asset-investment decisions in Saudi Arabia. As the financial manager for a firm, explain how this relationship would affect your investment decisions. Explain how your decisions might affect short-term revenue forecasts. For your discussion post, your first step is to summarize the article in two paragraphs describing what you think are the most important points made by the authors (remember to cite the information, as appropriate). For the second step, include the reference listing with a hyperlink to the article. Please note, do not copy the article into your post and limit your summary to two paragraphs. Let me know if you have any questions. Enjoy your search.
