Profitability & Stability of Earnings Components - Part II

To calculate the risks for the components in the Profitability & Stability of Earnings Components - Part I worksheet, follow these steps:

Enter a Name for the Other Component

If you use the Other component, enter a name for it.

Enter the Negative and Positive Responses

For each risk component, enter the negative and positive responses in the columns labeled "Negative" and "Positive". The worksheet will calculate the risk for the component based on the responses and display the result in the column labeled "Calculated Risk".

Assign the Risk Values

For each component, evaluate the risk calculated by the worksheet. Does it seem appropriate to you? Decide what seems to be the appropriate risk for the component based on the worksheets calculation and your own analysis. Enter the risk you want to assign to each component in the column labeled "Selected Risk".