The Systems Development Life Cycle Has Often Been Criticized Because

question 63

Multiple Choice

The systems development life cycle has often been criticized because:

• A)It became obsolete when COSO published its internal control framework.
• B)Its risks cannot be managed with the COSO framework.
• C)Both it became obsolete when COSO published its internal control framework and its risks cannot be managed with the COSO framework.
• D)Neither it became obsolete when COSO published its internal control framework nor its risks cannot be managed with the COSO framework.

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Definitions:

Arbitrage Opportunity

The chance to buy an asset at a low price in one market and simultaneously sell it at a higher price in another market to profit from the price difference.

Risk-Free Rate

The estimated rate of profit from an investment void of risk, usually showcased by the return on government securities.

Expected Return

The projected average return on an investment, considering all possible outcomes weighted by their respective probabilities.

Risk Premiums

The additional return expected from an investment when compared to a risk-free asset, compensating investors for bearing higher risk.