1. a. Explain the historical definition of risk. b. What is a loss exposure? c. How does objective risk differ from subjective risk? 2. a. Define chance of loss. b. What is the difference between objective probability and subjective probability? 3. a. What is the difference between peril and hazard? b. Define physical hazard, moral hazard, attitudinal hazard, and legal hazard. 4. a. Explain the difference between pure risk and speculative risk. b. How does diversifiable risk differ from nondiversifiable risk? a. Explain the meaning of enterprise risk. b. What is financial risk? c. What is systemic risk