Which of the Following Techniques Is a More Appropriate Risk

question 36

Multiple Choice

Which of the following techniques is a more appropriate risk management tool for a company in which asset value is not easily measurable?

• A)stress risk
• B)credit value at risk
• C)market risk
• D)delta at risk
• E)cash flow at risk

---

Definitions:

Instrumentality

The belief that a particular action will lead to a particular outcome, emphasizing the means-end relationship in motivation theories.

Valence

The perceived value or desirability of a reward or outcome, influencing motivation and goal-directed behavior.

Locke's Goal-Setting Theory

A theory suggesting that specific and challenging goals along with appropriate feedback contribute to higher and better task performance.

Average Total Cost

The total cost of production divided by the number of goods produced, representing the per-unit cost of production.