Explain why the standard deviation represents risk
What will be an ideal response?
Standard deviation reflects the volatility of (future) losses and thus it tells the risk manager how much worse future losses can be compared to the expected future loss. The expected loss is an estimate, but its standard deviation shows the volatility associated with this estimate. The more volatility, thus the higher the standard deviation, the less accurate the estimate thus the more risk.
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a. the accounting system b. the control environment c. control procedures d. this is not a weakness
An organization offers a tuition reimbursement program to employees who have demonstrated the ability to take on new responsibilities and challenges. This organization is investing in developing employees through
A. on-the-job training. B. mentoring. C. simulation. D. varied work experiences. E. formal education.
Answer the following statements true (T) or false (F)
An argument in favor of unregulated markets is that because of private opportunities to contract for information, market intervention in the form of mandatory disclosure rules is both unnecessary and undesirable.
A running total of the number of units handled by a retailer involves a _____ system
a. point-of-sale b. stock-counting c. perpetual inventory unit control d. visual inspection