Post Utme Esut 2017 Commerce Question 17

Practice objective / multiple choice question 17 from the 2017 Post Utme Esut Commerce examination.

Post Utme Esut 2017 Commerce Objective / Multiple Choice
Question 17 POST_UTME_ESUT • 2017 • COMMERCE • objective

A firm's risk management strategy involves diversification, hedging, and insurance. Which of the following is a benefit of diversification?

Answer Options

Correct Answer A. It reduces the overall risk of the firm
B. It increases the overall risk of the firm
C. It reduces the cost of capital
D. It increases the cost of capital
Correct Answer
A
Correct Option:
It reduces the overall risk of the firm

About This Question

This is Post Utme Esut 2017 Commerce Question 17. It is one of the objective questions from the 2017 Post Utme Esut Commerce examination.

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