Risk Management 1.Financial risk management can be distilled into two issues: position size and money management. Briefly identify the single most important risk consideration these two issues address and then, explain how they do it. 2. Briefly explain the Theory of Runs and how it can apply to investment decision-making. 3. Briefly explain how the Martingale system can be integrated with the "dollar-cost averaging" and then, explain one advantage and one disadvantage of using this approach as an investment strategy. 4. An Investment Policy Statement states that "if the equity portion of the Investment Portfolio loses more than 25% from the beginning year value, all equities must be liquidated and held in a cash position for the rest of the year." Explain why this is easier to implement in a corporate account than it is to do it in a personal account