_____ Enables Firms to Cope with Unexpected Events That Are

question 93

Multiple Choice

_____ enables firms to cope with unexpected events that are so sudden and devastating that they have the potential to destroy the organization if managers aren't prepared with a quick and appropriate response.

• A) Incident planning
• B) Contingency planning
• C) Strategic planning
• D) Crisis planning
• E) Emergency planning

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Definitions:

Security Market Line

A representation in the capital asset pricing model (CAPM) showing the relationship between expected return and systematic risk.

Risk Premium

The extra return expected by an investor for holding a risky asset instead of a risk-free asset.

Expected Return

The average return an investor anticipates on an investment which is uncertain, based on the probable returns.