Which of the Following Is True About Speculative Risks

question 22

Multiple Choice

Which of the following is true about speculative risks?

• A) A firm cannot profit from its exposure to speculative risk.
• B) The risk/return tradeoff is not applicable to speculative risks.
• C) Risk managers must be tolerant of negative outcomes related to speculative risks.
• D) Speculative risk is not a source of great concern for risk managers.

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Definitions:

Guilt-Inducing Strategies

Techniques aimed at manipulating others' emotions to induce feelings of guilt for persuasion or behavioral change.

Guilt And Shame

Guilt refers to the feeling of remorse for having done something wrong, while shame involves feeling embarrassed or humiliated by one's actions, character, or associations.

Constructive

Serving a useful purpose; tending to build up.

Destructive

Causing great and irreparable harm or damage.