1ST SEMESTER, 2014/2015 EXAMINATION

FIN 210: INTRODUCTION TO FINANCE

TIME ALLOWED 90 MINUTES

USE FOR QUESTIONS 1 to 5

DATA N’000

Credit Sales 40,000

Average Debtors 15,000

Profit before Tax 8,000

Total Assets 54,000

Interest on loan 7,000

Stock 3,000

Cash 7,600

Trade creditors 3,700

Shareholder funds 38,000

Long term debt 10,000

1. The Current ratio is ______ (a) 4.3:1 (b) 6.9:1 (c) 3.4:1 (d) 3.9:1

Current Assets
Current Ratio =
Current Liabilities

Where Current Assets are:

 N

Average Debtors : 15,000

Stock : 3,000

Cash : 7,600

Total : 25,600

Current Liabilities are:

Trade Creditors 3,700

So; Current Ratio : 25,600

3,700

6.918

Current Ratio : 6:4:1 (B)

2. The Quick ratio is ______ (a) 2:1 (b) 6.1:1 (c) 3.5:1 (d) 3.4:1
Quick Ratio

Current Assets – Stock

Current Liabilities

25600−3000
3700

22600
= 6.108
3700

Quick Ratio : 6:1:1 (b)

3. The Return on total aspects is _______ (a) 25% (b) 26% (c) 27% (d) 28%
Return on total Asset (%)
 Profit before Interest and Tax (PBIT)
Total Assets

Where PBIT = PBT (Profit before Tax) + Interest on Loan.

PBIT = 8000 + 7000 = N15,000

Total Assets : N54,000

Returns on Total Asset (ROTA)

15,000
x 100% = 28% (D)
54,000

4. The debt ratio is ______ (a) 29% (b) 31% (c) 70% (d) 19%

Long Term Debt

Debt Ratio :
Total Asset

Long Term Debt = N10,000

Total Assets = N54,000

𝟏𝟎,𝟎𝟎𝟎
x 100% = 19% (D)
𝟓𝟒,𝟎𝟎𝟎

5. Day receivable outstanding is _______ (a) 139days (b) 131days (c) 137days
(d) 136days
Average Debtors
x 365 days
Credit Sales
𝟏𝟓,𝟎𝟎𝟎
x 365 days = 137 days (c)
𝟒𝟎,𝟎𝟎𝟎

USE FOR QUESTION 6 TO 10

James is considering investment in the following securities whose random returns are
given below:

SECURITY X SECURITY Y SECURITY Z

Return Probability Return Probability Return Probability

N N N

27,000 0.5 15.000 0.1 20,000 0.4

30,000 0.2 22,000 0.3 25,000 0.2

35.000 0.1 27.000 0.2 30,000 0.3

40,000 0.2 30.000 0.4 35,000 0.1

6. What is the expected value of Security Y a. N25.000 b.N31,000 c. N25.500

d N27.500
Expected Value of Security Y

E (Y) where E(Y) = RiPi

Ri = Return @ time i

Pi = Probability of Return @ time i

From the given information:

E(Y) = (15,000 x 0.1) + (22,000 x 0.3) + (27,000 x 0.2) + (30,000 x 0.4)

= N25,000 (c)

7. The variance of security X is a. N23,250.000 b. N27,500,000 (c) 26,000.000

d. None of the above
The variance of security X = var (X)

But;

Var (X) = E(X2) – [E(x)]2

Where E(X2) =  Ri2 x Pi

E(x) =  Ri x Pi
 E(x2) = [[(27,000)2 𝑥 0.5] + [(30,000)2 𝑥 0.2]

= N987,000,000

E(x) = (27,000 x 0.5) + (30,000 x 0.5) + (35,000 x 0.1) + (40,000 x 0.2)

= 31,000

Therefore:

Var(x) = 987,000,000 – (31,000)2

= 987,000,000 – 961,000,000

Var(x) = 26,000,000 (C)

8. The Standard deviation of security Z is a. N5,099 b. N4,S22 c. N5.220

d. None of the above.
Standard Deviation of Security Z
= √Var Z = √(Z2 ) − [(Z]2
(Z) = (20,000 x 0.4) + (25,000 x 0.2) + (30,000 x 0.3) + (35,000 x 0.1)
(Z) = 25,000
(Z2) = (20,0002 x 0.4) + (25,0002 x 0.2) + (20,0002 x 0.3) + (35,0002 x 0.1)
(Z2) = 677,500,000

√Var (Z) = √677,500,000 − (25,5000)2

= √27,250,000
= 5,220 (C)

9. The coefficient of variation of security Y is a. 16% b. 18% c. 20% d. 19%

Co-efficient of Variation (COV) on Security Y.

𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝 𝐃𝐞𝐯𝐢𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐘
COV(Y) = x 100
𝐄𝐱𝐩𝐞𝐜𝐭𝐞𝐝 𝐕𝐚𝐥𝐮𝐞 𝐨𝐟 𝐘
 √Var(Y) 100
x
E(Y) 1

E(Y2 )− [E(Y)]2
x 100
E(Y)

E(Y) = 25,000
E(Y 2 ) = (15,0002 x 0.1) + (22,0002 x 0.3) + (27,0002 x0.2) + (30,0002 x
0.4)
= 673,500,000
Var(Y) = 6.73,500,000 - (25,500)2
= 23,250,000

Standard Deviation of Y

= √Var (Y)

= √23,250,000

= 4,821.82538

Co-efficient of Variation (Y)

4,821.82538
= x 100%
25,500

= 18.90911914% ≃ 19%

10. If James is a risk averse investor, which security would you recommend to him
a. Security Y b. Security X c. Security A d. Security Z
Since James is a Risk averse Investor, It means he will choose the security with
the lowest co-efficient of variation i.e. a less Risky Security.
But;
√𝐕𝐚𝐫(𝐱)
C.O.V(x) = x 100
𝐄(𝐱)

E(x) = 31,000
Var(x) = √26,000,000
 5,099.019514
= x 100
31,000

= 16.4%
COV(Y) = 19%
√Var(Z)
COV(Z) = x 100
E(Z)
5,220.153254
x 100
25,000

= 205%

Security has the lowest Co-efficient of Variation, It should be recommended to

James (B)

11. As the winner of a competition, you can choose one of the following prizes:
a. N100,000.00 now
b. N180,000.00 at the end of 5 years
c. N19,000.00 at the end of each year from the current year to the 10th year
d. N11,400 a year forever

If the interest rate is 12%, which opinion is the most valuable prize?

1. The Decision rule in this context is to select the option that has the highest
present value.
N
Option A
: 100,000
Present Value
Option C 1 – 1.12−10−10
: 19,000 ( )
Present Value 0.12

= 107,354.2375 (Ordinary Annuity)

Option B
: 180,000 (1+0.12)-5
Present Value

: 180,000(1.12)-5
= 102,136.834 (Lump Sum)
Option D 11,400
:
Present Value 0.12

: 9,500 (Perpetuity) (C)

12. Tunde wishes to invest the sum of N10,000.00 annually for five years and prefers
to start his investment in the current year. Find the future value of his annuity
plan of the rate of return is 15%. a. 33,521.55 b. 67,423.81 c. 20,113.67 d.
None of the above

This is an ordinary annuity with Annuity of N10,000 yearly for 5 years with an
interest rate of 15%.
Therefore:
(𝟏+𝐫)𝐧 − 𝟏)
FV = A( )
𝐫
(1+0.15)5 − 1)
FV = 10,000 ( )
0.15

= N67,423.8139 (B)

13. How long will it take an investment to triple itself with 45% return on
investment? a. 7years b. 10 years c. 3 years d. 3 months
This is a lump sum:
r = 0.45, n=?
Let X be the investment and also the present value from the question:
Investment (1 + r)n
3x x (1+0.45)n
=
x x

3 = (1 + 0.45)n
Loge both sides
log 𝑒 3 = log 𝑒 (1 + 0.45)n
log 𝑒 3 = nlog 𝑒 (1.45)
Divide both sides by log 𝑒 1.45
log𝑒 3 𝑛 log𝑒 1.45
=
log𝑒 1.45 log𝑒 1.45
log𝑒 3 1.098612289
n= =
log𝑒 1.45 0.3715635564

n = 2.956727778
 n = 3yrs(C)

14. A customer of a bank deposits N10,000.00 in account today at an in… rate

continuously compounded 7%. How much will she have in her account after 1
year? (a) N10,725.00 (b) N10,028.00 (c) N10,498.00 (d) N13,231.00

This is a lump Sum:

Interest is compounded continuously r = 0.07

n = 4
Future Value = Pern
10,000 x e0.07x4
10,000 x (1.323129812)
= 13,231.29812 (D)

15. The future value of N100,000.00 invested for 10 years at 15% is (a) 404,555.77
(b) 1,000,000.00 (c) 115,000.00 (d) 2,030.371.82

This is a lump Sum (Interest)

So; r = 0.15, n = 10, P = 100,000
FV = 100,000 (1.15)10
= 404,555.7736 (A)

16. At what rate would N100,000.00 invested for 5years double (a) 0.1487% (b)
40% (c) 1.487% (d) 14.87%

This is lump Sum:

r = ?, n = 5
From the given information, Let X be the present value future value = 2x
Recall FV = PV(1 + r)n
2x = x(1+r)n
 D.B.S by x
2x x(1+r)n
=
x x

When n = 5
2 = (1 + r)5
21/5 = (1 + r) 5 x 1/5
21/5 = 1 + r
5
1 + r = √2
5
r = √2 - 1
r = 1.148698355 - 1
r = 0.1148698355 x 100%
r = 14.8698355%
r = ≃ 14.87% (D)

17. An investor has identified a three year investment paying 15% per annum. If he
invests N62.5million, how much will his investment be worth at the end of the 3
years (a) N9505million (b) N41 million (c) N21.09million (d) N72.35million

Future Value: Investment (1 + r)n

Where investment is the present value:
62,500,000 (1 + 0.15)3
62,500,000 (1.15)3
62,500,000(1.52087.5)
= N95,054,687.5
≃ 95.05million (A)

18. Ajayi is considering an investment with Ibeto Investment Ltd involving a lamp
sum of N5:00,000.00 to be invested for 5 years with interest compounded
quanerly at 20% per annum. How much will the investment be worth at the end
of the period? (a) N12,441,600.00 (b) N13,266,489.00 (c) 10,368,000.00 (d)
N12,968,500.00
 This is a lump sum with interest convertible 4 times every year.
𝐫
FV = PV(1 + )mn
𝐦

Where PV = N5,000,000
m = Quarterly = 4
n = No of years = 5
r = Rate of interest : 20%
Therefore;
r
FV = PV (1 + )mn
m

0.2 4x5
5,000,000 (1 + )
m

0.2 20
5,000,000 (1 + )
4

5,000,000 (1.05)20
5,000,000 (2.653297705)
13,266,488.53
13,266,489 (B)

19. If a customer of a bank depsits N1,000,000.00 today in her account paying 7%

per annum interest compounded continuously, how much will she have in her
account in 4 years (a) 1,075,200.43 (b) 1,002,800.64 (c) 1,046,820.26 (d)
1,323,129.31

Compounded Interest
Continuously
FV = Pe-rt
FV = 1,000,000 e-.07 x 4
Where e = 2.718
FV = 1,000,000 * 2.7180.28
FV = 1,323,129 * 812 (C)
20. A 40 year old civil servant will retire at the age of 65 and is expected to live up
to 85years. Assuming that his salary is N400,000 per annum, how much will he
be able to spend manually after retirement till he dies if he invests … of his salary
each yer (interest rate is 10% compound annually)? (a) 1,966,941.19 (b)
231,036.17 (c) 98.347.06 (d) 170,271.27

At age 40, The civil servant invest 5% of his salary which is 0.05 x 400,000 =
20,000; i.e. he invest N20,000 every year for 25 years.
(65 - 40) = 25
The future of the amount at age 65 is
𝟏.𝟏𝟎𝟐𝟓 −𝟏
FV = 20,000 [ ]
𝟎.𝟏𝟎

N1,966,941.189
So; 1,966,941 is the amount available for him to spend from age 65 to 85 when
he will die.
n = 85 – 65 = 20years.
Let X be the amount he will spend annually from retirement until he die @ 85.
NB: A = X

𝟏−(𝟏+𝒓)−𝒏
Since PV = A( )
𝒓

1−(1+0.10)−20
1,966,941.189 = X( )
0.10

1,966,941.189 = X(8.51356372)
8.51356372X = 1,966,941.189
Divide Both Sides by 8.51356372
8.51356372x 1,966,941,189
=
8.51356372 8.51356372

r = 231,036.174
≃ 231,036.17 (B)
21. _______ Is a decision which is concerned with the management of current assets
(a) Investment Decision (b) Finance Decision (c) Dividend Decision (d)
Liquidity Decision
22. Which of these is an example of financial intermediaries in the provision of long
terms fund? (a) Issuing House (b) commercial Banks (c) Stock broking Firm (d)
A & C (e) B & C
23. _______is not an organized institution that Manages the purchase and one of
financial assets (a) Money Market (b) Capital (c) Bond Market (d) Debt Market
(e) None of the above
24. Which of these is an example of a specialized bank in Nigeria (a) Finance houses
(b) Discount houses (c) Community Bank (d) Commerce (e) Merchant Bank
25. Insurance company is an example of ____________ (a) Financial Institution
(b) Specialized Bank (c) Non-Bank Financial Institution (d) Bank Financial
Intermediaries
26. ............. is not an organized institution that facilitates the purchase and sale of
financial assets, (a) Money Market (b) Capital Market (c) Bond Market
(d) Derivative Market (e) None of the above
27. ......... and ......... are not examples of the providers of fund in the capital market
(a) Individuals & Unit trust (b) Banks & Insurance funds (c)Private Firms &
Government (d) Individuals & Pension Funds
28. ............ Is the most diversified of the financial institutions? (a) Micro finance
(b) Bureau -de-change (c) Commercial Banks (d) Development Banks (e) All
of the above
29. Out of the main sources of funds …… is cheaper to others (a) Ordinary Stock
(b) Preference Stock (c) Sale of Assets (d) Bond (e) Equity
30. ........... is a decision which is concerned with the management of stocks and
creditors (a) Dividends (b) Liquidity (c) Acquisition (d) Investment
31. Henry borrowed the sum of #8,000 from Zenith Bank on the 1st of January, 1991
and agrees to repay the principal as well as the interest on the loan in December
31st 2000. If the bank charges 10% interest rate per annum. How much should
he pay Zenith Bank? (a) #20,750k (b) #43,050 (c) #38,250 (d) #31,038
 FV: 8,000 (1.10)10
20,749.93968

≃ 20,750 (A)

32. Project Y has the following expected annual pet cash flows over 4 years useful
life span.
Year 0 1 2 3 4
Cash flow 17,800 8,000 4,000 6,000 6,000
If the discount rate used for evaluating the project is 15%. What is the NPV of
the Project? (a) #790.20 (b) #230 (c) #640.40 (d) #444.40

Net present value = Present value of future cash

NPV = Returns – Initial outlays
NPV = Ct(1 + r)
Where Ct = Cash Flow @ Time (t)
NPV = 8000(1.15)-1 + 4000(1.15)-2 + 6000(1.15)-3 + 6,000(1.15)-4 - 17,800
= 6956.52 + 3024.57 + 3945.10 + 3,430.52 – 17,800
= 17,356.71 – 17,800
N (443.24)
The closest to the Answer is N(444.40) (D)

33. Project X gives annual net cash inflows of #450 for five years. What is the
project’s payback period, if it’s cost is #1800? (a) 6years (b) 3.5year (c) 4years
(d) 5 years

Payback period is the number of years an investment take to recap its initial
outlay.

Annual Cash Flow 450

 Initial outlay 1,800

𝐈𝐧𝐢𝐭𝐢𝐚𝐥 𝐎𝐮𝐭𝐥𝐚𝐲 𝟏𝟖𝟎𝟎

PBP: :
𝐀𝐧𝐧𝐮𝐚𝐥 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝟒𝟓𝟎

4years (C)

34. In estimating the cash flows from a project, firms should not take one of the
following factors into consideration.
a. The value of any future investment opportunities arising from the project
b. Cash receipts and payment incremental to the project
c. The probable effect of the project on other assets of the firm
d. The opportunity east and revenues indirectly attributable to the project
35. ABC Plc has 10,000 units of shares outstanding and a profit after tax of
#100,000. If the firm sells additional 1,000 units of shares for #10 per share and
invests the proceeds of the extra shares sold in a 10% government bond. What is
the firm’s new earnings per share (EPS)? (a) #1 (b) #8 (c) #12 (d) #7.50

36. Wealth maximization objective is more superior to other objectives because…

(a) All of the above (b) It considers timing of return (c) It takes account of
both return and risk (d) It balances short term and long term benefits
37. The function of a financial manager must be evaluated in line with the overall
objective of (a) Profit maximization (b) Diversification (c) Satisfying
(d) Shareholder’s wealth maximization
38. Which of the following is a criticism of the profit maximization objective? (a)
All of the above (b) It is vague (c) It ignores the timing of revenues (d) It
ignores risk or uncertainty of future earnings
39. The wealth of the shareholders will be maximized if (a) The market price of a
company’s shares goes up (b) The market price of a company’s shares remains
the same (c) None of the above (d) The market price of a company’s shares
goes down
40. A series of equal payment made at fixed period of time indefinitely is …… (a)
Perpetuity (b) Annuity (c) Ordinary annuity (d) Annuity due

Use the information below to answer questions 41 – 44

Mr. Drogba bought a property worth N200,000 and made a down payment of N90,000
while the remaining balance is to be paid back by installment for the years at an
agreed interest rate of 20% annually.

41. What was the balance left after the down payment or initial deposit? (a)N97,836
(b) N10,000 (c) N90,000 (d) N32,000

Let X be the amount of annual installment = The Equation will be given as:
𝟏−𝟏.𝟐−𝟓
200,000 = 90,000 + x( )
𝟎.𝟐
1−1.2−5
200,000 - 90,000 = x( )
0.2
1−1.25
110,000 = x( )
0.2

The balance left down payment is N110,000 (B)

42. What was the ending balance at end of first years? (a) N95,219 (b) N97,836 (c)
N110,000 (d) N90,000

From (1) in Q(4i), make (x) the subject of the formula:

1−1.25
110,000 = x ( )
0.2

110,000 = x (2.99061214)
110,000
x = ( )
2.99061214

x = 36,781.76738
Since the Annual Installmental payment is 36,781.76738, the closing Balance
can be derived by constructing amortization schedule.
 YR A B Interest C Annuity D=C–B E=A–D
Opening 20% Principal Balance
Bal
1 110,000 22,000 26,781.767 14,781.76 95,218.233

Therefore the ending balance at the end of first year is N95,218.233. (A)

43. What was the annual instalmental payment? (a) N110,000 (b) N36,781.7
(c) N45,163 (d) N90,000

The annual installmental payment is X = N36,781,76736

≃ 36,781.8 (B)

44. What was the interest amount in the first year? (a) N33,350 (b) 52,500 (c)
N36,781 (d) N22,000

Interest Amount on the first year is

N110,000 x 0.20
= N22,000 (D)

45. At what annual rate of interest compound annually will N6,000 in a fixed deposit
account amount to N8,000 in 3 years? (a) 10.7 (b) 7% (c) 7.7% (d) 7.5%
8000 6000(1+r)3
=
6000 6000

(1 + r)3 = 4/3

1 + r = (4/3)1/3

r = (4/3)1/3 - 1

r = (1.333333)1/3 - 1

r = 1.100642416 – 1
 = 0.100642416 x 100

10.06% (A)

46. ______ is a series of payment receipt that occur for an indefinite time period
(a) Annuity (b) Perpetuity (c) Irregular cash-flow (d) redeemable debt

47. A firm is faced with the following three projects with their returns probability
profiles: which of the projects has the best expected return?

Probability % Project A Project B Project C

0.5 N2000 N9000 N6000

0.4 N1600 N1200 N2000

0.1 N 900 N 900 N 200

(a) Project C (b) Project A (c) None (d) Project B

The best Expected Returns is the security that has the highest. Expected
Return

For Project (A)

E(A) = (2000 x 0.5) + (0.4 x 1600) + (0.4 x 900)
E(A) = 1000 + 640 + 90 = 1,730
For Project (B)
E(B) = (900 x 0.5) + (1200 x 0.4) + (900 x 0.1)
4500 + 480 + 90 = 5,070
For Project (C)
E(C) = (6000 x 0.5) + (2000 x 0.4) + (200 x 0.1)
3000 + 800 + 20 = 3,820
Project B has the highest and best Expected Returns (D)
48. How much will Alhaja Usman receive from her N1,000 savings account deposit
for 4yrs with Unity Bank at 7% continuously composed rate of interest.
(a) N12,168 (b) N13,231 (c) N12,250 (d) 13,168

FV = Pert

1000 * 2.7180.07x4
1000 x 2.7180.28
= 1,323.129812 (B)

49. A collective investment scheme has the following series of cash flows from a
project at the end of each year three consecutive years. What should be the future
value of this investment after three years at 15% interest rate?

YEAR CASH INFLOWS N DCF

1 5000 1.15 5750

2 6000 1.3225 7935

3 7000 N 900 10646

(a) N21,400 (b) N13,900 (c) N21,00 (d) N20,513

YR Cash flows Discounting factor Future value

1 5,000 1.152 6612.5

2 6,000 1.151 6900.0

 3 7,000 1.150 7000.0

Therefor FV = 6612.5 + 6900.0 + 7000.0 = N20512.5 (D)

50. One key method of reflecting the idea of time value of money in financial
calculations is (a) Compounding (b) Inflation (c) Simple interest (d)
Multiplication
51. In the normal course of business, obligations arise which need to be liquidated
over a given period of time in future. What concept best explains the process of
making payments towards liquidating such obligations? (a) Mortgage Payment
(b) Amortization (c) Sinking Fund (d) Payback (e) Lense Payment
52. By tenor of instruments traded, the financial maker may be classified into
(a) Weekly and Daily Markets (b) Primary and Secondary Markets (c) Money
and Capital Markets (c) Formal and Informal Markets (d) Equity and Bond
Markets
53. Which of the following is not one of the requirements for listing company’s
shares in the Main Board of the Nigerian Stock Exchange? (a) Any shares to be
listed must be fully paid up (b) A minimum of 25% of the company’s shares
must be held by the public (c) The Company’s must sell its shares in all states
of the Country (d) The company must be registered as a public limited
liability company
54. Which of these statements best describe the relationship between Risk and
Return in taking decisions in Finance (a) The higher the risk, the higher the
actual return (b) The lower the risk, the higher the expected return (c) The
higher the risk, the higher the past return (e) The higher the risk, the higher the
expected return
55. Ifeanyi is due to receive the sum of N11,047.13 exactly one year from now from
a bank that pays interest rate of 10% per annum at monthly interval. What is the
present value of this such of money? (a) N10,000 (b) N8,888.85 (c) N10,047.13
(d) N10,042.85 (e) N9,047.13
 𝐫
PV = FV ( 1 + )mn
𝐦

0.10 12 x 1
PV = 11,047.13(1 + )
12

0.1 12
= 11,047.13 (1 + )
12

= 9,999.99939
≃ 10,000 (A)

Use this to answer question 56 – 58

Bulama desires to set up an IT business in 3years’ time with the sum of N200,000.
He decided to set aside equal sums at the end of each year at interest rate of 10%
per annum.

56. How much should be set aside annually? (a) N80,418.17 (b) N66,666 (c)
N6344.11 (d) N12,688.82 (e) N60,422.96

To (58) requires a sinking fund schedule

1.103 −1
200,000 = x ( )
0.10

200,000 = x (3.31)
3.31x = 200,000
200,000
x=
3.31

= 60,422.96073

YR Cash flows Discounting Future value

factor
1 60,422.96013 60,422.96013

2 60,422.96013 6042.296093 60,422.96013 136,888.2175

3 126,888.2175 12,688.8…15 60,422,96073 200,000.00

 The amount that should be set aside. Annually is N60,422.96073 (E)

57. How much would Bulama have for the business at the end of the second year?
(a) N200,000 (b) N120,845 (c) N60,422.96 (d)N126,888.22 (e) N168,878.16

The amount he will have for the business at the end of the second year is
N122,888.2175 (D)

58. What is the total interest to be received by Bulama in the second and third year?
(a) N60,422.96 (N24,929.54 (c) N18,731.12 (d) N12,688.82 (e) N27,472.53

Total amount to be received B (6042.296073 + 12,688,8217)

= 18731.11782 (C)
59. In managing the balance sheet of UBA PLC. The asset side of the balance sheet
represent (a) Sources of funds (b) Uses of funds (c) What the bank owe (d) None
of the above
60. Uncertainty in relation to risk management means that there is (a) objective
probability (b) subjective probability (c) probability (c) Probability is not
Determinable d) All of the above