Chapter 17

Question 1

What are the fundamental principles of the CIMA code of ethics?
Hint: OPPIC

Answer 1

-Integrity
-Objectivity
-Professional competence and due care
-Confidentiality
-Professional Behaviour

Question 2

What is the difference between Risk and Uncertainty?

Answer 2

-Risk can be quantified

-Uncertainty means the outcomes are not defined or known and thus probability cannot be used

Question 3

What is Expected value?

Answer 3

Expected value represents the long run average result that a decision maker could expect were the event be repeated.

EV = Sum(x.p)