Consider the definition of risk related to financial and economic decisions.

a) what are the elements to take into consideratikn for the dedinition of risk related to financial and exonomic decisions?

b) there are two possible methods to assess risk. Explain wach one of them and when it is more appropriate to use one or another.

C) for each of the following event state which risk assesment method you would use? Explain your answer.

1) you are considering buying life insurance policy.

2) you lost your job, you are considering an investment into a new company. The investment requires you to use all of your savings.

3) You are investing in stocks and concluded that the best strategy would be to hire a specialist to invest in a diversified portfolio. How would ypu value the risk of this investment?