Which of the Following Statements About Risk Management Strategy Is

question 11

Multiple Choice

Which of the following statements about risk management strategy is (are) correct?
I. It reduces the variability of a firm's expected cash flows.
II. It reduces the chance of catastrophic financial distress.

• A) Only statement I is correct.
• B) Only statement II is correct.
• C) Both statements I and II are correct.
• D) Neither statement I nor II is correct.