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Basic Question 9 of 11

An entity choosing to transfer risk may ______

A. establish a reserve fund to cover losses.
B. enter into a derivative contract.
C. buy insurance.

User Contributed Comments 1

User Comment
mikus A = risk acceptance
B = risk shifting
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

describe methods for measuring and modifying risk exposures and factors to consider in choosing among the methods

CFA® 2024 Level I Curriculum, Volume 6, Module 6.