Fin 415 Final Exam

Final Exam
Samantha James
FIN 415
April 23, 2012
Delia Moore

Final Exam
FIN 415 Corporate run a endangermentiness Management
FINAL EXAM
True/False (3 points each)
1.___F___ Risk management is an cozy process that is used to attain jeopardizes.
2.___F___ at that place is no deal to be concerned about intangible assets in a pretend management plan.
3.____T__ during the jeopardize identification process, risk symptoms be determined.
4.___T___ Risks can be assessed using quantitative and qualitative measures.
5.___T___ think is a qualitative measurement tool.
6.___T___ When the Delphi technique of measuring risk is used; senior management is consulted with to determine their assessment of risk.
7.__F____ the risk management tool of risk transfer, involves acting as if there is no risk.
8.__F___ Business risk is the variance in a firms earnings per share that is derived from its sales variability in conjunction with fixed operating costs.
9.__T___ the exposure to caper risk may be reduced by portfolio diversification.
10.__F___ the devil major categories of property are real property and business organization property.
Multiple choice (4 points each)
11. The country risk appraisal aims to identify all of the following external factors affecting an organization just;
a. political
b.financial
c. operational
d. economic

12.



The utility theory places individuals into three categories of modeling behavior. They are; risk neutral, risk seeking and:
a. risk believing
b. risk manager
c. risk taking
d. risk averse

13. Diversification is the key to the management of portfolio risk because it;
a. shows investors how to make specie quickly
b. allows investors to lower portfolio risk without adversely affecting return
c. totally eliminates risk
d. moves risk from one security to the other

14. Which of the following does the texts discuss as the green sources of pure risks:
a. property, liability, financial, health
b. property, liability, life, health, loss of income
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