According to the Engineering Definition of Risk, It Holds That

question 21

Multiple Choice

According to the engineering definition of risk, it holds that a risk is

• A) an unwanted event that may or may not occur.
• B) the probability that an event will occur multiplied by some appropriate measure of the consequence of that event.
• C) the probability that an event will occur multiplied by the monetary value (usually measured in US dollars) of that event.
• D) a quantitative entity defined in the design code applicable to a project.

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Definitions:

Growth Rate

The rate at which a company's earnings or revenue increases over a specified period.

Required Return

The minimum rate of return that investors expect or require from an investment to make it worthwhile.

Annual Dividend

The total dividend payment a company makes to its shareholders in a year.

Dividend Growth Model

A valuation method used to estimate the value of a stock based on its expected future dividend payments and growth rate.