Portfolio Management Q156
0. The “Doctrine of No Surprises” states that:
- A
risk managers are expected to predict risks.
- B
the effect of the outcome of a predictable or an unpredictable event would not surprise the risk manager and the effect would have been quantified and considered in advance.
- C
the effect of the outcome of a predictable or an unpredictable event would not surprise the risk manager, but it would be difficult to quantify it in advance.
- Option : B
- Explanation : The “Doctrine of No Surprises” states that the effect of the outcome of a predictable or an unpredictable event would not surprise the risk manager and the effect would have been quantified and considered in advance.
