QUESTION 1 1 V V Match definition/description or the example/scenario to the term which it best describes. G. Any type of activity which can result in potential loss A Fundamental Risk B. Speculative Risk The event that directly caused a loss C. Physical Hazard An example: a space heater increases the chance of a fire D. Objective Fik An example: a government ordinance requires owners of wild animals to E. Moral Hazard pay for any injury caused by the animal to other people . even to F. Pure Risk trespassers. G. Risk Exposure An example: my car's engine has stopped working. I stage a car accident so that insurance will pay me for the working' value of the car. H. Subjective Risk 1. Hazard An example: an investment opportunity costs me $1,000 up-front. The potential payouts are: J. Legal Hazard K Morale Hazard -Paying an additional $1,000 L. Peril Returning only my initial investment M. Diversifiable Risk N. Ambiguity Losing the initial investment An example: town one stock but can eliminate some of the risk of that stock losing money by holding a diverse portfolio of stocks