风险管理与保险全套习题含答案（大学期末复习资料）.doc

97Test Bank Chapter 1: Introduction to RiskCHAPTER 1Introduction to RiskTrueFalse1.A peril is a contingency that can cause a loss.ANSWER: T 2.An objective risk is the risk based on the mental state of an individual who experiences uncertainty as to the outcome of an event.ANSWER: F3.Pure risk exists when there is uncertainty as to whether loss will occur.ANSWER: T4.If a loss is certain to occur, objective risk is zero.ANSWER: T5.As the probability of an event occurring increases, the degree of objective risk also increases.ANSWER: F6.Doing nothing about a risk exposure is a viable risk management technique.ANSWER: T7.Enterprise risk management is concerned solely with the management of exposures to pure risks.ANSWER: F8.As the number of exposure units increases, the degree of risk increases.ANSWER: F9. As the chance of loss increases, the variation of actual from expected losses tends to increase if the number of exposures remains the same. ANSWER: F10.Employee theft is an example of a morale hazard.ANSWER: F11. The longrun chance of occurrence or relative frequency of a loss is defined to be the degree of risk.ANSWER: F12. The threat of Congress enacting a costly environmental regulation is an example of a risk that is both pure and dynamic.ANSWER: T13.The purchase of a stock that has little chance of earnings growth or price appreciation is an example of the assumption of a speculative risk.ANSWER: T14.The degree of subjective risk is easily measured.ANSWER: F15. The term objective risk is most often used in connection with pure static risks.ANSWER: T16. If two companies have the same number of exposure units and experience the same average number of losses, then the degree of risk for each company tends to be equal.ANSWER: F17.The degree of risk is essentially the same concept as the chance of loss.ANSWER: F18.Fire is an example of a physical hazard.ANSWER: FMatchinga. Dynamic risks1._ is the process of systematically managing risks through the following steps: identifying risks, evaluating risks, selecting risk management techniques, and implementing and reviewing decisions.b. Financial risk2.A/An _ is a contingency that can cause a loss.c. Hazards3._ is uncertainty regarding loss.d. Integrated risk management4.Probable variation of actual from expected losses divided by the expected loss is the _.e. moral hazard5._ does not include a chance of a gain and involves only uncertainty as to whether loss will occur.f. morale hazard6.A/An _ is associated with intentional actions designed to either cause a loss or increase the severity of a loss.g. objective risk7._ involves uncertainty as to whether a gain or a loss will occur.h. peril8. _ arises from psychological uncertainty that is based on an individuals mental attitude or state of mind.i. Pure risk9._ are conditions that introduce or increase the probability of a loss stemming from the existence of a given peril.j. Risk10._ are caused by societal changes.k. Risk management11.The mental attitude of a careless or accident prone person is referred to as _.l. Speculative risk12._ are those that would exist in an unchanging society that is in stable equilibrium.m. Static risk13.A risk management approach in which an organizations speculative and pure risks are both considered together is known as either enterprise or _ risk management.n. Subjective risk14.Credit risk, commodities, and interest rate risks are all examples of _.ANSWERS: 1.l2i3k4h5j6f7m8o9d10a11k12g13n14b15e16c102Test Bank Chapter 2: Risk Identification and EvaluationMultiple Choice1.Examples of physical hazards include a. a building fireb. a building fire, oily rags, and a dishonest employeec. oily rags and a gas leakd. a dishonest employee.ANSWER: C2. Expressed as a percentage, what is the degree of objective risk if a company owns 1,000 cars, has averaged 25 collision losses per year, the collision losses will very likely range between 20 and 30, and last years loss experience was 23? a. 43.5 percentb. 92.0 percentc. 25.0 percentd. 40.0 percent.ANSWER: D3.Which of the following are steps in the fourstep risk management process described in the text? a. select risk management techniques and purchase insurance on selected risksb. select risk management techniques and identify risksc. select risk management techniques, purchase insurance on selected risks, and identify risksd. identify risks and analyze severity of expected losses.ANSWER: B4.Risk is defined as a. uncertainty concerning lossb. the probable variation of actual from expected experiencec. the longrun chance of occurrence or relative frequency of lossd. a specific contingency that may cause loss.ANSWER: A5.In which of the following towns is the degree of objective risk from the peril of fire the highest? a. Town A has 10,000 homes with an average loss of 2 percent and a range of 100250 losses per yearb. Town B has 100,000 homes with an average loss of 5 percent and a range of 400500 losses per yearc. Town C has 1,000 homes with an average loss of 1 percent and a range of 715 losses per yeard. Town D has 10,000 homes with an average loss of 3 percent and a range of 150350 losses per year.ANSWER: C6. Risk can be categorized as a. objectivesubjective and perilshazardsb. objectivesubjective, physicalmoralmorale, and purespeculativec. objectivesubjective and purespeculatived. objectivesubjective, physicalmoralmorale, purespeculative, and perilshazards.ANSWER: C7. Pure risk may be said to create an economic burden in all except which of the following ways? a. reserve funds may be necessitated that may not yield the highest rate of return available,b. pure risk can result in feelings of mental unrest and worry that can drain human energiesc. pure risk results in gambling, which is a destructive social forced. pure risk may deprive society of certain goods or services determined to bear excessive risk.ANSWER: C8.Which of the following does not involve a moral hazard? a. a dishonest employeeb. an employee known to falsify personal injury claimsc. a driver who drives recklessly because he feels that any damage to his car will be covered by insuranced. a building owner who is considering torching the building.ANSWER: C9.The formula used to calculate the degree of objective risk is a. probable variation of actual from expected losses divided by the expected lossb. expected loss multiplied by the quantity 1 minus variance divided by expected lossc. range of reasonable loss expectation divided by actual loss experienced. expected losses minus probable losses divided by the range of actual losses experienced.ANSWER: A10.Which one of the following is not a risk management technique that a risk manager will typically choose for managing pure risks? a. purchase insurance to cover a risk exposureb. do nothing about a risk exposurec. sell a high risk investment to purchase one of lower riskd. establish a reserve fund.ANSWER: C11.A peril that relates to a dynamic risk is a. an earthquakeb. a riotc. deathd. an increase in the consumption of cholesterol by society.ANSWER: B12.An insurer is least likely to insure a. static riskb. pure riskc. objective riskd. speculative risk.ANSWER: D13.Under which of the following conditions will objective risk decrease, assuming everything else remains constant? a. the number of exposure units increasesb. the chance of loss decreasesc. the number of exposure units decreasesd. the probable variation of actual from objective losses increases.ANSWER: A14.A peril that involves pure risk is a. a building fire that burns one of several company owned office buildingsb. the purchase of a stock with a high degree of price fluctuationc. a competitors attempt to take market share from a businessd. betting that the Dallas Cowboys will win the Super Bowl at the beginning of the football season.ANSWER: A15.Which of the following represent hazards that affect the level of Company ABCs liability risk? a. a large amount of debt in comparison with the level of ABCs assets and an award of a judgment against ABCb. an award of judgment against ABC and the frequent occurrence of slippery spills on the floor of ABCs personnel departmentc. the frequent occurrence of slippery spills on the floor of ABCs personnel department and a particularly toxic waste product that is temporarily stored in a vacant lot next to a large chemical factoryd. an award of judgment against ABC and a particularly toxic waste product that is temporarily stored in a vacant lot next to a large chemical factory.ANSWER: CCHAPTER 2Risk Identification and EvaluationTrue-False1.Loss exposure checklists cannot be tailored to specific industries. ANSWER: F2.A financial statement analysis would include a review of a long range strategic plan. ANSWER: T3.Outside suppliers can be added to a companys flowcharts. ANSWER: T4.Risk managers can discover previously unidentified loss exposures from on-site inspections. ANSWER: T5.Risk management information systems can analyze claim payments, accident causes, and safety programs. (The risk manager does these things, not the RMIS.)ANSWER: F6.Risk managers should leave contract analysis for potential risks to the companys attorney. ANSWER: F7. If all risk identification methods are properly used, all loss exposures can be identified. ANSWER: F8. The maximum possible loss to a firm with $200,000 in assets is $200,000. ANSWER: F9. Liability losses outside the United States are not as likely to happen as those inside the country.ANSWER: T10.The binomial distribution is used to evaluate partial losses. ANSWER: F11.The main difference between the Poisson distribution and the normal distribution is that one involves continuous variables while the other involves discrete variables. ANSWER: F12.As the number of exposure units increases the loss exposure becomes less risky, all else the same.ANSWER: T13.A loss exposure and a pure risk are the same thing. ANSWER: F14.One method to identify loss exposures is the Poisson analysis. ANSWER: F15.Risk mapping considers both risk frequency and risk severity.ANSWER: TMatchinga. Adjusted return on capital1._ involves analyzing each item on a firms income statement and balance sheet regarding risks that may be present.b. contractual liability2.A/An _ maps out the physical flow of goods and can be analyzed with respect to the types of risks that may affect the goods at each point.c. expected value3.A/An _ enumerates various specific sources of loss.d. financial statement analysis4.The _ of a group of losses represents the average of all losses. e. flowchart5.The _ represents the middle value when values are arranged from smallest to largest.f. law of large numbers6.The _, which is the square root of the variance, is a measure of variability.g. loss exposure checklist7.Under the concept of _, ones liability may be imputed to another by contract.h. maximum possible loss8.The _ of a collection of observations is defined as the observed value with the largest relative frequency.i. mean 9.Among other things, a _ analyzes past losses and forecasts future losses with the use of computers.j. median 10.The _ states that the greater the number of exposure units insured, the greater the accuracy in the prediction of future losses by the insurer.k. mode11.The _ is another term that describes the mean of a group of values.l. risk management information system12.By calculating the _, the firm can determine the extent to which the firm is exposed to a particular loss.m. standard deviation13._ analysis constructs probability distributions of risks and combinations of risks to estimate the risk of loss at different probability levels.n. Value at risk 14._ assesses how much capital would be required to keep the probability of bankruptcy below a specified level.ANSWER: 1d2e3g4i5j6m7b8k9l10f11c12h13n14a16Test Bank Chapter 3: Property and Liability Loss ExposuresMultiple Choice1.Which approach is not used by risk managers to identify and evaluate risks? a. contract analysisb. risk mappingc. financial discriminationd. on-site inspections.ANSWER: C2.Which method would be more useful to discover a dollar estimate of losses? a. flowchartsb. financial statement analysisc. contract analysisd. statistical analysis.ANSWER: B3.Which combination of methods would be best to identify as many loss exposures as possible for an organization? a. flowcharts and contract analysisb. on-site inspections, statistical analysis, and contract analysisc. financial statement analysis, statistical analysis, and on-site inspectionsd. all the methods combined.ANSWER: D4.The Goode Company has a plant in Newark, New Jersey, and a plant in upstate New York. The company has had many prior damage losses due to riots in the Newark plant in the past, but no similar losses in the New York plant. The possibility of the riot losses in the New York plant are considered remote. There have been reports of community tensions in Newark recently. What is the maximum probable loss due to riots to the plants? a. There is no maximum probable loss because nothing has happened yetb. The maximum probable loss is complete damage to both plantsc. The maximum probable loss is minor damage to the plant in Newarkd. The maximum probable loss is complete destruction of the plant in Newark.ANSWER: C5.In the past, Tracies Ceramics has averaged 5 injuries among her 30 employees per year. Whats the probability of an employee injury this year? a. 0.1667b. 16.67c. 6.67d. none of the above.ANSWER: A6.Which of the following uses is not a usual function of a RMIS? a. claims managementb. report generationc. catastrophe predictiond. adjuster performance monitoring.ANSWER: C7.Consider the following numbers that range from 10 to 40 (10, 14, 23, 23, 30, 36, 40) and their probabilities (.20, .10, .05, .20). Name the median, mean, mode, and the expected value respectively. a. 23, 23, 23, and 25b. 23, 24, 23, and 25.3c. 23, 24.3, 24, and 26d. 23, 25.3, 23, and 30.ANSWER: A8.What is the best number of exposure units for Cofield Drugs in estimating the actual loss frequency of their 100-vehicle automobile fleet? a. 100b. 92c. 1,000d. infinite. ANSWER: D9.The Cookie Company (CC) has 1,200 employees and the chance of an injury to employees is 0.05. Suitmaker Lauren Alexander (LA) has 750 employees and the chance of an injury to employees is 0.08. The possible variation of losses for both are 34 and 40, respectively. What is the objective risk of both companies, and which is more risky? a. 46.6% for CC, 56.7% for LA; LA is more riskyb. 56.6% for CC, 66.7% for LA; LA is more riskyc. 56.6% for CC, 46.7% for LA; CC is more riskyd. 46.6% for CC, 66.7% for LA; CC is more riskyANSWER: B10.Sharlene, the risk manager of Chief Rocking Records, has been asked to assist the corporate strategy team in planning a new compact disk factory. The team wants Sharlenes input on how many CDs they should produce. Sharlene knows the losses are distributed normally, and the probability of loss is 8%. She will use 2 standard deviations for the calculations. What is the number of exposure units needed for the actual loss to be within 10% of the expected? a. 4,300b. 4,600c. 4,900d. infinite.ANSWER: B11.Which theoretical distribution would be most appropriate to use for a large number of exposure units (over 50) and the probability of loss is very small? a. normal distributionb. binomial distributionc. Poisson distributiond. fourier distribution.ANSWER: C12.Which theoretical distribution would be most appropriate to use for a small number of exposure units (under 50) if there is no probability of a partial loss? a. normal distributionb. binomial distributionc. Poisson distributiond. fourier distribution.ANSWER: B13. Which measure of central tendency is used most often by risk managers? a. medianb. modec. standard deviationd. mean. ANSWER: D14.Sharon, the risk manager of Tracies Ceramics, wants to know more about the employee injuries at her firm. One loss was a wrist sprain that has a probability of 0.06. Another was a back sprain with a probability of 0.07. Yet another was overinhalation of a hazardous substance with a probability of 0.02. The other two were slips and falls with a probability of 0.13. If the amounts of the losses were $700, $3,000, $2,500, $