True or False:

(1) Risk can be quantified, estimated, and hedged. Uncertainty cannot. Don’t mistake risk for uncertainty, and try to design institutions flexible enough to deal with unforeseen contingencies. (I believe the answer is TRUE).

(2) When customers have unknown values, you face a familiar trade-off: price high and sell only to all customers, or price low and sell to all customers. (I am not sure about this one for the wording. I think the answer is TRUE as well).

Answer rating: 100% (QA)

The detailed answer for the above question is provided below 1 True Risk Can be quantified probabili... View the full answer