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:

Sedimentary Sequence

A chronological order of sedimentary rocks laid down in layers, reflecting the history of sediment deposition over time.

Shale

A type of fine-grained sedimentary rock that splits into thin layers, formed from mud composed of clay and other minerals.

Sandstone

A clastic sedimentary rock composed mainly of sand-sized mineral particles or rock fragments.

Rounded Pebbles

Smooth, round stones typically formed by the prolonged action of water or other forms of erosion and weathering on rocks.