Which of the Following Procedures Best Accounts for the Relative

question 77

Multiple Choice

Which of the following procedures best accounts for the relative risk of a proposed project?

• A) Adjusting the discount rate downward if the project is judged to have above-average risk.
• B) Reducing the NPV by 10% for risky projects.
• C) Picking a risk factor equal to the average discount rate.
• D) Ignoring risk because project risk cannot be measured accurately.
• E) Adjusting the discount rate upward if the project is judged to have above-average risk.

---

Definitions:

Negative Emotions

Feelings that are unpleasant or undesirable, such as sadness, anger, or fear.

On-the-job

Engaged in or pertaining to the performance of tasks, duties, or responsibilities within a work environment. A second explanation emphasizing practical, hands-on experience obtained while working.

Cultures

The shared values, beliefs, norms, and practices that shape the behaviors and traditions of a group of people.

Affective Events Theory

This theory outlines how work-related events trigger emotional reactions, which can, in turn, influence employees' attitudes and behaviors in the workplace.