兹维博迪金融学第二版试题库10TB

Chapter Ten

Principles of Risk Management

This chapter contains 30 multiple choice questions, 10 short problems, and 5 longer problems. Multiple Choice

1.________ that “matters” because if affects people's welfare. ________ exists whenever one does not

know for sure what will occur in the future.

(a)Uncertainty is risk; Uncertainty

(b)Risk is uncertainty; Uncertainty

(c)Risk is uncertainty; Risk

(d)Uncertainty is risk; Risk

Answer: (b)

2.________ is a measure of willingness to pay to reduce one's exposure to risk.

(a)Risk aversion

(b)Risk avariciousness

(c)Risk predilection

(d)Risk inflation

Answer: (a)

3.When choosing among investment alternatives with the same expected rate of return, a risk averse

individual chooses the one with the ________ risk.

(a)surest

(b)most uncertain

(c)lowest

(d)highest

Answer: (c)

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4.________ is a particular type of risk people face because of the nature of their business or pattern of

consumption.

(a)Operational efficiency exposure

(b)Opportunity exposure

(c)Risk exposure

(d)Risk reduction

Answer: (c)

5.________ are investors who take positions that increase their exposure to certain risks in the hope of

increasing their wealth.

(a)Operations insurers

(b)Foreign exporters

(c)Hedgers

(d)Speculators

Answer: (d)

6.The riskiness of an asset or a transaction ________ be assessed in isolation or in the abstract.

(a)can

(b)cannot

(c)must

(d)it varies according to the situation

Answer: (b)

7.By definition, ________ are investors who take positions to reduce their exposures.

(a)operations insurers

(b)foreign exporters

(c)hedgers

(d)speculators

Answer: (c)

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8.The risk of loss arising from obsolescence due to technological change or changes in consumer taste

is an example of ________.

(a)unemployment risk

(b)liability risk

(c)financial-asset risk

(d)d consumer-durable asset risk

Answer: (d)

9.The risk arising from holding different kinds of financial assets such as equities or fixed income

securities denominated in one or more currencies is an example of ________.

(a)unemployment risk

(b)liability risk

(c)financial-asset risk

(d)consumer-durable asset risk

Answer: (c)

10.Business risks of the firm are borne by its ________.

(a)shareholders

(b)creditors

(c)employees

(d)all of the above

Answer: (d)

11.________ consists of figuring out what the most important risk exposures are for the unit of analysis.

(a)Risk assessment

(b)Selection of risk management techniques

(c)Implementation

(d)Risk identification

Answer: (d)

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