What Types of Employees Should a Company's Head of Risk

question 36

Multiple Choice

What types of employees should a company's head of risk management choose when putting together a negotiating team?

• A) executives with highly developed abilities to deceive when necessary in order to secure a favourable agreement
• B) experienced individuals who want to win and are willing to bluff and bluff hard to have a successful career
• C) individuals with adequate legal knowledge for the negotiation of an enforceable contract that meets needs and protects interests
• D) individuals who know the game and are not shy in demonstrating a complete lack of ethical standards

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Definitions:

Utility Function

A mathematical representation in economics of a consumer's preference ordering over a set of goods or outcomes.

Risk-Free Asset

An asset with a certain rate of return; often taken to be short-term T-bills.

Indifference Curve

A graphical representation in microeconomics showing different combinations of two goods that provide an individual with the same level of satisfaction or utility.

Expected Rate of Return

The anticipated return on an investment, taking into account both the risk of the investment and market conditions.