Which of the Following Statements Is Correct Regarding Total Risk

question 108

Multiple Choice

Which of the following statements is correct regarding total risk?

• A) The coefficient of variation is a measure of the firm's total risk.
• B) All firms have the same amount of total risk because they are all exposed to the same market risk.
• C) Conglomerates will have less total risk than a firm that has one line of business.
• D) None of these choices are correct.

---

Definitions:

Employees' Perceptions

The way employees view or interpret actions, policies, and the environment of their workplace.

Nonexempt

Refers to employees who are covered by the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA).

Clerk

An administrative or office worker responsible for managing files, keeping records, and performing general clerical duties.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, typically used as an indicator of inflation.