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CTP · Question #264

(Topic 3) Which of the following is generally NOT a benefit of financial risk management?

The correct answer is C. The opportunity to take advantage of market inefficiencies. See the full explanation below for the reasoning.

Question

  • (Topic 3)

Which of the following is generally NOT a benefit of financial risk management?

Options

  • AThe likelihood of financial distress decreases
  • BGreater predictability of future cash flows
  • CThe opportunity to take advantage of market inefficiencies
  • DEnhanced borrowing advantage in credit markets

How the community answered

(49 responses)
  • A
    10% (5)
  • B
    6% (3)
  • C
    82% (40)
  • D
    2% (1)

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