The Facts That Individual Currency Standard Deviation Is Usually 5

question 30

Multiple Choice

The facts that individual currency standard deviation is usually 5% to 15 % and that the standard deviation for other commodities used by a firm is usually much larger indicates that:

• A)currency risks are the most important risk that any firm faces.
• B)risks exist no matter what a firm does and efforts to reduce risks are generally ineffective.
• C)currency risks are not as important to a firm as commodity price risks.
• D)standard deviation is not a proper measure of risks faced by a firm.

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Definitions:

Crash Budget

An extreme budgeting method used to significantly reduce spending or development time, often under tight deadlines or financial constraints.

Crash Duration

The shortest possible time for completing an activity by allocating it the maximum efficient resources, often resulting in increased costs.

Crash Cost

The expense associated with reducing the time on a project activity or task, typically higher than normal costs, for faster completion.

Time Savings

The reduction in the amount of time needed to complete a task or activity, often resulting from efficiency improvements or technological advancements.