Which of the Following Is NOT a Key Factor in a Risk

question 189

Multiple Choice

Which of the following is NOT a key factor in a risk assessment?

• A)risk
• B)need
• C)responsivity
• D)necessity

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, crucial in determining the value of investments.

Real Risk-free Rate

The theoretical return on an investment with zero risk, taking into account the effects of inflation, thus representing the true purchasing power of the investment return.

Expected Inflation

The anticipated rate at which the general level of prices for goods and services will rise over a period of time.