Which of the Following Statements About Approaches to Political Risk

question 16

Multiple Choice

Which of the following statements about approaches to political risk management is NOT true?

• A)Passive political risk management discourages managers from fully or partially hedging their bets against exposure to political hazards.
• B)Passive political risk management assumes that it is difficult, if not impossible, to systematically model political risk.
• C)Active political risk management assumes that positive and negative political events in any country are neither independent nor random events.
• D)Active political risk management assumes that political events unfold in observable patterns that statistical methods can detect.

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Definitions:

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 1 represents certainty.

Sample Space

The set of all possible outcomes of a statistical experiment.

Outcome

The result or final product of an event, process, or action.

An Event

In probability and statistics, an outcome or a set of outcomes from an experiment or situation.