Which of the Following Is True About Risk Management

question 1

Multiple Choice

Which of the following is true about risk management?

• A) It ensures that the project will proceed as planned.
• B) It minimizes legal liability.
• C) It increases community awareness of oral health concerns.

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Definitions:

Interest Rate Risk

The potential for investment losses due to fluctuations in interest rates, which can affect the value of interest-bearing assets like bonds.

Price Appreciation

The increase in the value of an asset or investment over time, not accounting for dividends or interest earned.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable by holding others constant.

Yield

The income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost.