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CTP · Question #361

(Topic 4) Economists are forecasting a rise in gas prices within the next 3 months. Charged with the task of establishing a risk mitigation approach for the company, the CRO has determined that the…

The correct answer is D. made a quantitative assessment. See the full explanation below for the reasoning.

Question

  • (Topic 4)

Economists are forecasting a rise in gas prices within the next 3 months. Charged with the task of establishing a risk mitigation approach for the company, the CRO has determined that the company has considerable exposure to fluctuations in gas prices. In coming to this conclusion, the CRO:

Options

  • Aassessed financial derivatives.
  • Bmade a qualitative assessment.
  • Dmade a quantitative assessment.

How the community answered

(21 responses)
  • A
    19% (4)
  • B
    10% (2)
  • D
    71% (15)

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