Which of the Following Statements Is Correct Regarding Total Risk

question 48

Multiple Choice

Which of the following statements is correct regarding total risk?

• A)The coefficient of variation is a measure of the firm's total risk.
• B)All firms have the same amount of total risk because they are all exposed to the same market risk.
• C)Conglomerates will have less total risk than a firm that has one line of business.
• D)None of these statements are correct.

---

Definitions:

Reduced Cost

In optimization, the amount by which an objective function's value could decrease by increasing a non-basic variable by one unit.

Projected Revenue

An estimated amount of money that an organization, project, or product is expected to generate over a specific period in the future.

Total Suites

The complete count of sets or groups of rooms designed for use together.

Price/Demand Elasticity

Price/Demand Elasticity measures the responsiveness of the demand for a good or service to changes in its price, indicating how quantity demanded is affected by price alterations.