When a company invests a lot of money in a particular project, it is concerned about the amount of risk involved. In general, if the expected life of a project is longer, its potential risk is Group of answer choices negligible. secondary. greater. nonexistent. constant.

Respuesta :

The potential risk will be secondary

A secondary risk is one that occurs as a direct result of a mitigation activity performed to address an existing hazard. It is not tied to the initial danger, as is residual risk, but rather to the response done to eradicate this threat.

The risk-return tradeoff is a trading theory that connects high risk with high gain. The optimal risk-return tradeoff is determined by a number of criteria, including an investor's risk tolerance, the number of years till retirement, and the ability to replenish lost money. Time is also important in establishing the optimal levels of risk and return in a portfolio.

Since here the company has taken risk of investing a lot of money in the project so the risk is high and will result in more profit in the long run and risk will be minimized in the long run whereas in short run the risk is high.

Therefore , the correct option is secondary.

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