Using Market Risk Management (MRM) to Identify the Potential Return

question 9

Multiple Choice

Using market risk management (MRM) to identify the potential return per unit of risk in different areas by comparing returns to market risk so that more capital and resources can be directed to preferred trading areas is considered to be which of the following?

• A)Regulation.
• B)Resource allocation.
• C)Management information.
• D)Setting limits.
• E)Performance evaluation.

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Definitions:

Article

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Discount Period

The window of time in which a payment can be made at a reduced rate.

Welfare

Governmental support aimed at ensuring the basic physical and material well-being of individuals, often including provisions for health care, education, and housing.

Helping

The act of providing assistance or support to others in need, often motivated by empathy, moral obligations, or the anticipation of reciprocation.