Provide realistic examples of each of the risk response strategies for both negative and positive risks

A positive risk response produces provides positive strategies to achieve a positive goal while a negative risk response provides negative strategies to achieve a negative goal. There are four ways four strategies that produces a response risk; enhance, exploit, accept and share. The type of response risk will vary in the accept part.

An example of a positive risk is when you are given a project in class and you are to finish it in four months. Being a hardworking person that you are, you wanted to finish it in one month and so you find methods to compress your time schedule and achieve your goal.

Let us take the example from the above mentioned before for an example of a negative risk. So instead of four months, since you do not like working or the fact that maybe you don't like the project, you passed your project in six months. What you just did is lounge around the corner and did nothing to just improve the project.

As the interest rate doubles, the present value is the half.

Explanation:

Giving the following information:

Cf= $100

i= 0.07

i= 0.14

To calculate the present value of a perpetuity, we need to use the following formula:

PV= Cf/i

PV= present value

Cf= cash flow

i= interest rate

First perpetuity:

PV= 100/0.07

PV= $1,428.57

Second perpetuity:

PV= 100/0.14

PV= $714.286

As the interest rate doubles, the present value is the half.