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Basic Question 10 of 11
Which statement is TRUE?
B. Risk modification is strictly risk reduction or prevention.
C. Risk mitigation methods are mutually exclusive.
A. A hedge is to reduce risk.
B. Risk modification is strictly risk reduction or prevention.
C. Risk mitigation methods are mutually exclusive.
User Contributed Comments 2
| User | Comment |
|---|---|
| 10425406 | Does risk modification include increasing risk? |
| rojaslav | Yes, a company could be interested in increasing its risk for the sake of potential higher returns/better outcomes if they are willing to accept the additional risk |
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
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.