Which of the Following Is True About Project Risk

question 28

Multiple Choice

Which of the following is true about project risk?

• A) Risk seems to have a negative correlation to complexity.
• B) High-risk projects are in very few cases highly complex.
• C) The risk breakdown analysis explores the project from the perspective of what elements on the project add to project complexity.
• D) The project team develops a risk breakdown structure that addresses the items that are identified as high risk.
• E) The process of conducting a risk analysis focuses on developing an understanding of what can go wrong and the likelihood that it will go wrong.

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Definitions:

Scheduled Payments

Predetermined amounts of money paid at regular intervals, often part of a repayment plan for loans or mortgages.

Compounded Semi-annually

Interest on an investment is calculated twice a year and added to the principal, allowing the investment to grow faster than if it were compounded annually.

Proposed Payments

Suggested or planned amounts to be paid as part of a financial agreement or loan repayment schedule.

Scheduled Payments

Predetermined payments made over a specified period of time as part of the terms of a loan or mortgage.