Question

the due diligence process a. Uncovers all of the potential risks of an investment b. Underwrites a project’s future cash flows with a high degree of certainty c. is necessary only within an investment posses a high degree of risk d. is an imperfect process to determine whether the potential returns from an investment are sufficient given the potential risk

Answer 1

Answer:

The correct answer is letter "A": Uncovers all of the potential risks of an investment.

Explanation:

In the investment world, due diligence refers to a full investigation of the product and its inherent risks before the transaction. This ensures that all details are correct, leaving out non-important information. Only when all the information has been disclosed, the parties of a transaction can continue with setting the monetary terms of the transaction.