The CEO of QVB Holdings, a large diversified conglomerate, is keen to enhance shareholder value using an enterprise risk management framework. You are asked to assist senior management in quantifying and managing the risk-return trade-off for the entire firm. Specifically, the CEO wants to know which risks to retain and which risks to lay off and how to decentralize the company's risk- return trade-off decisions. Which of the following statements is/are correct? 1: Management should retain strategic and business risks in which the company has a comparative advantage but diversify risks that can be hedged inexpensively through the capital markets. II: When proposing new projects, business unit managers must evaluate all major risks in the context of the project's marginal impact on the firm's total risk. Both statements are incorrect Statement II only Statement I only Both statements are correct