20. This is one characteristic of Enterprise Risk Management a. Risks are managed in silos b. Integrated risk management Risk management conducted at corporate level d. Risk managers are responsible for the risks None above c. e. 21. Value at Risk (VaR) c. a. VaR increases if volatility decreases b. VaR increases if maturity decreases VaR increase if confidence level (1-u) increases d. The lower the VaR, the more conservative e. None above 22. This is one characteristic of duration, ceteris paribus a. The higher the coupon, the shorter duration b. The longer maturity, the less duration c. Duration of zero coupon is less than the maturity d. Duration for Consol (bond with infinite maturity) cannot be calculated None above e. 24. The components of Enterprise Risk Management basically (the most appropriate) a. Risk management process, infrastructure, culture and environment, goals b. Goals, risk identification, risk planning c. Infrastructure, risk planning, risk committee, risk organization d. Culture and environment, reward system, training None above e. 25. How to manage political risk in foreign country (sovereign risk) a. Increasing the benefits of expropriation (from host country point of view) b. Hiring less local employees c. Borrowing more from local bank d. Giving key technology to host country None above e