_____ is not a common way to recognize risk.

Question

Quizplus · Accepted Answer

Increasing the expected life of riskier projects is not a common way to recognize risk. Generally, risk is recognized through methods like increasing the minimum desired rate of return for riskier projects, reducing individual expected cash inflows by an amount that depends on their risk, and increasing expected cash outflows by an amount that depends on their risk. However, increasing expected life does not necessarily indicate higher risk, and therefore is not commonly used as a tool to recognize risk.

_____ Is Not a Common Way to Recognize Risk