Use the Following Statements to Answer This Question

question 86

Multiple Choice

Use the following statements to answer this question:
I.The risk premium is the expected payoff needed to get out of a risky situation.
II.The insurance premium is the payment needed to get into a risky situation.
III.Risk-averse investors willingly take fair gambles.

• A)I, II, and III are correct.
• B)I, II, and III are incorrect.
• C)I, II are correct, and III is incorrect.
• D)I, II are incorrect, and III is correct.

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Definitions:

Corporate Strategies

The comprehensive plans and actions that a company undertakes to achieve its long-term goals and objectives.

Intended Strategies

These are strategies that an organization plans and decides to implement in order to achieve specific goals or objectives.

Organizational Planning

The process of setting goals and defining the steps needed to achieve them within an organization.

Emergent Strategy

A strategy that arises in the absence of an intentional course of action, developing through patterns in the organization's decisions over time.