Mark owns a 2006 sedan. The last time Mark renewed his auto insurance, he decided to drop the physical damage insurance on this vehicle. How is Mark dealing with the auto physical damage exposure in his personal risk management program?

The practice of not putting all of your eggs in one basket is an illustration of ________

A) variance B) diversification C) portion control D) expected return

Assume you manage a firm that faces transaction exposure. Your company manufactures and sells bicycles around the world

You have just completed a large sale of bicycles to a chain of stores in Australia and received a promised payment of 250 AUD per tricycle. You have already sold 6,000 bicycles and are now awaiting payment which you expect to receive in 90 days. The exchange rate today is 1.25 AUD per USD. Over the next ninety days, the indirect exchange rate unexpectedly moves from 1.25 AUD to 1.22 AUD. What is the increase in domestic revenue due to this unexpected move in the exchange rate? A) $38,239 B) $12,589 C) $29,508 D) $38,496