Question
Please correct questions to the requirements Question 1. What are underlying objectives for the definition of risk? Risk is the degree of to which something
Please correct questions to the requirements
Question 1. What are underlying objectives for the definition of risk?
Risk is the degree of to which something of value can be achieved or lost by undergoing certain actions. Risks can be categorized as planned and unplanned while weighing the potential positive gains against the potential negative losses.
The underlying objectives for defining risk can be seen as a potential opportunity to achieve or lose something of value, positive or negative results for any endeavor, time boundary for the risk to show conclusive results or value at stake.
correction:
You are on the right track:
For the enterprise and for individuals, risk is a component to be considered within a general objective of maximizing value associated with risk. Alternatively, we wish to minimize the dangers associated with financial collapse or other adverse consequences.
Question 4. What are three major categories of risk attitudes?
The major categories of risk attitudes are those that are averted to risk, those who seek it, and those who are neutral to risk.
correction:
There are actual category titles: Risk Averse, Risk Seekers, and Risk Neutral. Oops, provided below.
Question 5. Explain the categories and risk and provide examples for each category.
Risk averse are those who get not willing when it comes to the thought of loss and want as much security as possible. An example would be people who choose to save their money in a bank certificate rather than investing in the stock market.
Risk seekers are those who seek out risk, they enjoy the thrill of the possibility of a high favorable outcome, much like a slot machine player.
Risk neutral people are those whose preference resides in between the extremes of risk. They will neither seek out risk, nor will they insure themselves against its losses. An example would be and investor choosing any verity of stocks ignoring the potential risk.
correction:
This question is asking about the categories of risk, not risk attitudes.
The main categories of risks: pure versus speculative, diversifiable versus nondiversifiable, idiosyncratic versus systemic.
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