Question
Which of the following statements are some of the guiding principles for making decisions on cash flow risk? I. Executives should be conservative when making
Which of the following statements are some of the guiding principles for making decisions on cash flow risk?
I. Executives should be conservative when making decisions for their firms.
II. A firm should not take on risk that will expose the overall operations in danger.
III. Firms should look at projects as a portfolio by aggregating them, rather than focusing on the risk of individual projects.
IV. Executives should take on all projects with positive expected value irrespective of risk.
a) I and III only.
b) II and III only.
c) II and IV only.
d) I, 11, III and IV
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Introduction To Derivatives And Risk Management
Authors: Robert Brooks, Don M Chance, Roberts Brooks
8th Edition
0324601212, 9780324601213
