Larger Inc. and Mini Inc. both are subject to the risk of employee injuries. Risk analyst...

 

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Larger Inc. and Mini Inc. both are subject to the risk of employee injuries. Risk analyst finds out that (1) the expected loss of Larger Inc. is $5 million, with a standard deviation $3 million; (2) the expected loss of Mini Inc. is $2 million, with a standard deviation $4 million. Which company has a higher risk? a. Larger Inc. has a higher risk b. Mini Inc. has a higher risk Oc The risk level of the two companies is the same Od. None of the above Larger Inc. and Mini Inc. both are subject to the risk of employee injuries. Risk analyst finds out that (1) the expected loss of Larger Inc. is $5 million, with a standard deviation $3 million; (2) the expected loss of Mini Inc. is $2 million, with a standard deviation $4 million. Which company has a higher risk? a. Larger Inc. has a higher risk b. Mini Inc. has a higher risk Oc The risk level of the two companies is the same Od. None of the above

Answer rating: 100% (QA)

Option A is correct because taking standard deviation into consideration the risk of Larger Inc c... View the full answer