Question

both are part one quetsion answer both please

36 a) The greater the ____, the greater the _____.

Select one:
a. exposure, variability
b. variability, time horizon
c. correlation, diversification
d. time horizon, risk

36 b)Which one of the following is a modern day example of strategic risk?

Select one:
a. Harley Davidson's move to relocate its factories to Europe
b. BMW's failure to abide by a government's air quality standards for pollution control devices on its cars
c. VW's emission control devices on its exported cars

Answer 1

1. The greater the TIME HORIZON, the greater the RISK.

when the time horizon will be greater it would mean that the risk will also be higher.

Correct answer will be option (D) time horizon, risk

2. Harley Davidson move to relocate its factories to Europe is an example of strategic risk because it is related to the strategy of the Harley Davidson.

Resr are types of systematic risk.

Correct answer will be option (A). Harley Davidson move to relocate its factories to Europe.