According to COSO ERM,which of the Following Is Not One

question 41

Multiple Choice

According to COSO ERM,which of the following is not one of the bases that should be used to analyze the risks of an identified event?

• A)Inherent risk.
• B)Organizational risk.
• C)Residual risk.
• D)Control risk.

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Definitions:

Market Rate of Return

The average or expected rate of return on an investment in the market.

Tax Rate

The rate determining the tax payment required from a person or a corporation’s earnings.

Weighted Average Cost of Capital

A calculation of a firm’s cost of capital in which each category of capital is proportionately weighted, including equity, debt, and other forms of financing.

Market Risk Premium

The extra return investors demand for taking the risk of investing in stocks over a risk-free asset.