What Is the Most Widely Recognized Way to Deter Fraud

question 35

Multiple Choice

What is the most widely recognized way to deter fraud?

• A)Interview every employee on a regular basis.
• B)Implement a good system of controls.
• C)Keep management involved in company procedures.
• D)Threaten employees that on being caught,he/she will be fired.

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Definitions:

Expected Market Return

The average return anticipated from an investment in the broader market, serving as a benchmark for evaluating investment performance.

Beta

A measure of a stock's volatility in comparison to the market as a whole.

Risk Premium

The additional return required by an investor for tolerating a higher level of risk compared to a safe investment.

Market Risk

The possibility for investors to experience losses due to factors that affect the overall performance of the financial markets.