which of the following statements about risk management is false? - Don't risk more than you...

which of the following statements about risk management is false?

- Don't risk more than you can afford to lose

-Don't risk a lot for a little

-The best buys in insurance cover those losses that are least likely to occur

-you should always buy insurance

Expert Solution

You Should always buy insurance is false about risk management.

Rule for Risk Management (Robert I Mehr and Bob A Hedges, Risk Management in Business Enterprise) :

1. Don't risk more than you can afford to lose

2. Don't risk a lot for a little

3. The best buys in insurance cover those losses that are least likely to occur

jeff jeffy answered 2 years ago

Which of the following statements about angiosperm reproduction is FALSE? Animal pollination is more efficient than...

Which of the following statements about angiosperm reproduction is FALSE? Animal pollination is more efficient than wind pollination Fruits increase the success of dispersal because animals consume the seeds can survive digestive tracts There is a diverse array of flower shapes and colors, largely related to the mode of pollination The pollen grain goes through lots of rounds of mitosis to become the fruit

Which of the following statements about risk management is correct? Select one: a. risk management has...

Which of the following statements about risk management is correct? Select one: a. risk management has an anti-insurance bias and seeks to minimize the use of insurance in dealing with risk. b. risk management is concerned primarily with the risk problems of giant corporations. c. risk management has relevance for organizations of all sizes. d. risk management is a function of business and as such has little relevance for the individual.

1. Which of the following statements are false? The Chinese Government owns more than 10% of...

1. Which of the following statements are false? The Chinese Government owns more than 10% of the outstanding Federal Government debt The Federal Government plays a significant role in the determination of the amount of US dollars in circulation The unemployment rate and inflation rate always move in opposite directions from each other Group of answer choices a. 1, 2 and 3 b. 2 and 3 c. 1 only d. 1 and 2 e. 3 only f. 1 and 3...

Which of the following statements about provider cost structure and financial risk is false? Group of...

Which of the following statements about provider cost structure and financial risk is false? Group of answer choices A provider that is predominately capitated can reduce risk by increasing the proportion of fixed costs. A provider’s cost structure has no impact on reimbursement risk. A provider that is predominately fee-for-service can reduce risk by increasing the proportion of variable costs. The risk under capitation can be reduced by increasing the number of capitated members (covered lives). The risk under capitation...

Which of the following statements is FALSE? A. The more inelastic is the demand for a...

Which of the following statements is FALSE? A. The more inelastic is the demand for a firm's product, the greater is the Lerner index. B. In the long-run, a perfectly competitive firm operates where its average total cost is minimized. C. If the monopolist sets its output such that MR, MC and AVC are all equal, the firm will be indifferent between staying open and shutting down. D. A profit-maximizing firm never produces where P < AVC.

Which of the following statements is false? Systematic risk is a market-wide source of risk and...

Which of the following statements is false? Systematic risk is a market-wide source of risk and is non-diversifiable. The beta estimate of the market portfolio is one. The yield to maturity is less than the coupon rate of a premium bond. Assuming no IRR problems, if IRR > cost of capital, the NPV estimate is negative. The reinvestment rate of the MIRR is the cost of capital.

Which one of the following statements is false? Beta is a measure of risk. "Market risk...

Which one of the following statements is false? Beta is a measure of risk. "Market risk premium” and “return on the market” are the same thing. CAPM is an acronym for Capital Asset Pricing Model. A disadvantage of using the dividend growth model to estimate the cost of equity is that it does not explicitly account for risk. You should not use the coupon rate on outstanding debt as the cost of debt in WACC.

Which of the following statements concerning financial risk is false? a. Generically, financial risk is...

Which of the following statements concerning financial risk is false? a. Generically, financial risk is related to the probability of a return less than expected. b. If an investment is held in isolation (stand-alone), the appropriate measure of risk is the beta coefficient. c. In theory, you can create a riskless portfolio by combining a large number of investments whose returns are uncorrelated (independent of one another). d. In the real world, it is not possible...

Which of the following statements is false regarding credit risk analysis?

Which of the following statements is false regarding credit risk analysis?Multiple ChoiceA lender is protected against credit risks by a loan’s covenant provisions since the interest rate is fixed by the Federal Reserve Bank.High-quality financial statements help a credit analyst to see the true performance at a company.Greater default risk is determined to exist when there is significant organizational reliance on a certain individual or customer.An estimate of a firm’s future financial condition is very important to most lending decisions.

Which of the following statements is false? (a) If the payback period is less than the...

Which of the following statements is false? (a) If the payback period is less than the maximum acceptable payback period, accept the project. (b) If the payback period is greater than the maximum acceptable payback period, reject the project. (c) If the payback period is less than the maximum acceptable payback period, reject the project (d) Two of the above. What is the payback period for TangAsha company’s new project if its initial after tax cost is P10,000,000 and it...

Question