Finding Ways of Reducing Negative Impacts on the Project as Well

question 2

Multiple Choice

Finding ways of reducing negative impacts on the project as well as enhancing positive impacts.

• A) Risk management planning
• B) Risk identification
• C) Qualitative risk analysis
• D) Quantitative risk analysis
• E) Risk response planning

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Definitions:

Increase Risk

The action or process of raising the level of danger or the chance of loss in a financial investment or business venture.

Expected Rate

The predicted interest rate or return for an investment over a specific period.

Diversification Effects

The reduction in risk achieved by investing in a variety of assets, thus minimizing the impact of poor performance from any single asset.

Portfolio A

A specific collection of financial assets such as stocks, bonds, cash equivalents, and their mutual funds, owned by an individual or an institutional investor.