financial planning – understanding risk


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Hi, i want you to solve this question based on my lecture notes, all types of risk are written in the notes .. i want you to define each one and give a sample example for each type .. actually its 11 type of risk is in the notes . i want the work to be done within the next six hours please. i have attached you the noteshere is the question1) ( A very important issue that must be considered in personal financial planning is the understanding of the term ‘risk’ . Risk can mean several things the financial planning association of Australia in conjunction with the Macquarie Investment Management Ltd has produced a booklet entitled the trade off: Understanding investment risk, please explain the different types of risk ?)best regard Document Preview: Summary continued Both financial planners and investors need to understand the risks involved and the economic and legislative environment Appendix Financial Planning Association The Financial Planning association (FPA) is the peak professional body for financial planning in Australia, representing approximately 12,000 individuals and businesses. Over 9,000 of its 12,000 members are practising financial planners. The stated aim of the FPA and its members is to strive to improve the financial wellbeing of all Australians – see FPA web site: www.fpa.asn.au FPA members include financial planners from a variety of backgrounds and disciplines, including over 5,500 Certified Financial Planners (TM). All FPA practitioner members are bound by a code of ethics, high professional standards and must meet continuing professional education requirements. FPA Priorities Key FPA priorities are: 1. Growing professional membership 2. Effective external relationships 3. Social and community responsibility 4. Sound operations, technology and finance 5. Good governance FPA Code of Ethics Principle 1: Client First Principle 2: Integrity Principle 3: Objectivity Principle 4: Fairness Principle 5: Professionalism Principle 6: Competence Principle 7: Confidentiality Principle 8: Diligence http://www.fpa.asn.au/default.asp?action=article&ID=21847&KeyWords=code%2Cof%2Cethics FPA Rules of professional conduct deal with: General conduct Disclosure statements to prospective clients Financial plan preparation Explanation of financial plan Financial plan implementation Client service Complaints Document administration FPA reporting requirements Minimum education competencies Supervision * Features of the Economic Environment continued Four Stages in the Business Cycle 1. Boom or expansion Employment and economic growth are high Increase in inflation is cause for concern 2. Contraction Economic growth starts to slow Sales begin to fall Unemployment starts to rise Features of the Economic… Attachments: ch01-ppt-mcke….ppt

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