What is an event with "Well$-$Defined" Risk?

Any event that is not split with a $50\%-50\%$ probability

An event with a very low level of risk

An event that many people experience every day

An event that the risk level is known with some certainty

A bank will determine the interest rate for loans based on$...$

All of the above

Expected profit for each loan

Risk of default

Size of the loan