these are true or false1. Companies can eliminate all risk if they imp

QUESTION

these are true or false1. Companies can eliminate all risk if they implement enough qualitative and quantitative risk techniques. 1_2. If the beta of Stock A is 1.4, this indicates that the stock is risky in comparison to every stock available.3. Futures and forwards are both contractual agreements ¦
1. Companies can eliminate all risk if they implement enough qualitative and quantitative risk techniques. F 2. If the beta of Stock A is 1.4, this indicates that the stock is risky in comparison to every stock available. F 3. Futures and forwards are both contractual agreements where an exchange of assets occurs on a specific date in the future. T 4. A variance of 6.2% means that the expected value of the variable will fall within or 6.2%, two-thirds of the time. T 5. Intellectual property does not include market share. T 6. Firm specific risk is considered nonsystematic and diversifiable. T 7. Reinsurers are used by insurance companies to¦

rn additional income by accepting some risk in return for a share of the reinsurance premium. T 8. Risk management may follow a top-down approach, originating at the corporate level, consolidated at the strategic business level, and implemented at the project level. T 9. Exposure to business risk may be reduced by portfolio diversification. T 10. A risk adverse person will pay up to the expected claim costs for insurance premiums. F

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