Author Question: How is risk defined? What will be an ideal response?[br][br][b][color=gray]Question ... (Read 66 times)

saliriagwu · **on:** Jul 11, 2018

How is risk defined?

What will be an ideal response?

Question 2

The provisions of the Sarbanes-Oxley Act of 2002, or SOX, apply to all U.S.-based corporations, as
well as to foreign corporations conducting business in U.S. markets.

Indicate whether the statement is true or false

yuyiding · **Reply #1 on:** Jul 11, 2018

Answer to Question 1

Risk means different things to different people, depending on the context and on how they feel about taking chances.
While certainly acknowledging these different kinds of risk, we limit our attention to the risk inherent in an
investment. In this context, risk is the potential variability in future cash flows. The wider the range of possible events
that can occur, the greater the risk.

Answer to Question 2

FALSE