Chapter Ten
Principles of Risk Management
This chapter contains 30 multiple choice questions, 10 short problems, and 5 longer problems.
Multiple Choice
1. ________ that “matters” because if affects people's welfare. ________ exists whenever one does not
know for sure what will occur in the future.
(a) Uncertainty is risk; Uncertainty (b) Risk is uncertainty; Uncertainty (c) Risk is uncertainty; Risk (d) Uncertainty is risk; Risk
Answer: (b)
2. ________ is a measure of willingness to pay to reduce one's exposure to risk.
(a) Risk aversion
(b) Risk avariciousness (c) Risk predilection (d) Risk inflation
Answer: (a)
3. When choosing among investment alternatives with the same expected rate of return, a risk averse
individual chooses the one with the ________ risk.
(a) surest
(b) most uncertain (c) lowest (d) highest
Answer: (c)
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4. ________ is a particular type of risk people face because of the nature of their business or pattern of
consumption.
(a) Operational efficiency exposure (b) Opportunity exposure (c) Risk exposure (d) Risk reduction
Answer: (c)
5. ________ are investors who take positions that increase their exposure to certain risks in the hope of
increasing their wealth.
(a) Operations insurers (b) Foreign exporters (c) Hedgers (d) Speculators
Answer: (d)
6. The riskiness of an asset or a transaction ________ be assessed in isolation or in the abstract.
(a) can (b) cannot (c) must
(d) it varies according to the situation
Answer: (b)
7. By definition, ________ are investors who take positions to reduce their exposures.
(a) operations insurers (b) foreign exporters (c) hedgers (d) speculators
Answer: (c)
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8. The risk of loss arising from obsolescence due to technological change or changes in consumer taste
is an example of ________.
(a) unemployment risk (b) liability risk
(c) financial-asset risk
(d) d consumer-durable asset risk
Answer: (d)
9. The risk arising from holding different kinds of financial assets such as equities or fixed income
securities denominated in one or more currencies is an example of ________.
(a) unemployment risk (b) liability risk
(c) financial-asset risk
(d) consumer-durable asset risk
Answer: (c)
10. Business risks of the firm are borne by its ________.
(a) shareholders (b) creditors (c) employees (d) all of the above
Answer: (d)
11. ________ consists of figuring out what the most important risk exposures are for the unit of analysis.
(a) Risk assessment
(b) Selection of risk management techniques (c) Implementation (d) Risk identification
Answer: (d)
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兹维博迪金融学第二版试题库10TB
