Statements about bearing risk collectively

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Reference no: EM131354708

1. Which of the following statements about bearing risk collectively is correct?

A) Bearing risk collectively results in a more cost-efficient outcome.

B) Bearing risk collectively is an application of risk diversification.

C) Bearing risk collectively means that the risk is spread over a larger group.

D) All of the above are correct.

2. Hoyes Lumber generally receives three checks a month in the amounts of $1,200, $1,650, and $2,200. The $2,200 check has a two-day collection delay while the others have a one-day delay. Given this information, what is the amount of the average daily float? Assume each month has 30 days.

1.$241.67

2.$140.79

3.$147.50

4.$168.33

5.$109.18

Reference no: EM131354708

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