Which of the Following Is a Consequence of Transferring Risk

question 123

Multiple Choice

Which of the following is a consequence of transferring risk to an insurance company?

• A)An increase in share value because risk has been reduced.
• B)A guaranteed small loss in exchange for protection against large losses.
• C)Higher rates of return because the firm is now free to pursue high-risk projects.
• D)Protection against losses at no significant cost to the firm.

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