4) The following information on a company's risks is given: - Baseline scenario financial projection (expenses are 90 percent of revenues) - Risk scenario A: A new enacted law increases the expense ratio from 90 percent of revenues to 95 percent of revenues. - Risk scenario B: A new competitor enters the market reducing the revenues about 20 percen In this example, the net income metric is used as baseline, and risk is defined as deviations from net income. Considering the financial impact of both risk scenarios occurring simultaneously, which of the belov statements is correct? a) The decrease in net income from the combination of both risk events is $70 million. In this case, the financial impact of the risks is additive. b) The decrease in net income from the combination of both risk events is lower ( $60 million) than the sum of the two risks occurring separately. c) The decrease in net income from the combination of both risk events is higher ( $80 million) than the sum of the two risks occurring separately. d) There is an increase in net income from the combination of both risk events of $10 million compared to the baseline scenario. 4) The following information on a company's risks is given: - Baseline scenario financial projection (expenses are 90 percent of revenues) - Risk scenario A: A new enacted law increases the expense ratio from 90 percent of revenues to 95 percent of revenues. - Risk scenario B: A new competitor enters the market reducing the revenues about 20 percen In this example, the net income metric is used as baseline, and risk is defined as deviations from net income. Considering the financial impact of both risk scenarios occurring simultaneously, which of the belov statements is correct? a) The decrease in net income from the combination of both risk events is $70 million. In this case, the financial impact of the risks is additive. b) The decrease in net income from the combination of both risk events is lower ( $60 million) than the sum of the two risks occurring separately. c) The decrease in net income from the combination of both risk events is higher ( $80 million) than the sum of the two risks occurring separately. d) There is an increase in net income from the combination of both risk events of $10 million compared to the baseline scenario