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American_Bankers_Association

CTFA · Question #62

A managerial option, in effect:

The correct answer is B. Limits the downside risk of an investment project. See the full explanation below for the reasoning.

Investment Management

Question

A managerial option, in effect:

Options

  • ALimits the flexibility of management's decision-making
  • BLimits the downside risk of an investment project
  • CLimits the profit potential of a proposed project
  • DApplies only to new projects

How the community answered

(16 responses)
  • A
    13% (2)
  • B
    81% (13)
  • D
    6% (1)

Topics

#managerial options#real options#downside risk#investment projects

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