Which of the following statements about the $$What is Risk?$$ section of the lecture material are TRUE: There is risk whenever there is some uncertainty about outcomes. A situation in which the value of an asset can either remain the same or decreases over a period of time can be described as $$Pure Risk$.$ Neither of the statements are true $($both are false$)$ Only statement $1$ is true Only statement $2$ is true Both statements are true $($neither are false$)$Which of the following concepts is MOST consistent with a situation in which the individual applying for insurance has more complete information about their situation and risks than the insurance company providing the insurance:

Question $3$Answer

Asymmetric information

Moral hazard

Adverse selection

Risk management