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NEW QUESTION: 1
A risk management program would be expected to:
A. implement preventive controls for every threat.
B. reduce control risk to zero.
C. maintain residual risk at an acceptable level.
D. remove all inherent risk.
Answer: C
Explanation:
Explanation
The object of risk management is to ensure that all residual risk is maintained at a level acceptable to the business; it is not intended to remove every identified risk or implement controls for every threat since this may not be cost-effective. Control risk, i.e., that a control may not be effective, is a component of the program but is unlikely to be reduced to zero.
NEW QUESTION: 2
Answer:
Explanation:
Explanation
NEW QUESTION: 3
An upward sloping line in total risk-return space along which completely diversified portfolios plot, is called
A. capital market line
B. security market line
C. efficient frontier
Answer: A
NEW QUESTION: 4
A. Option C
B. Option D
C. Option A
D. Option B
Answer: D