Question: Classifying risk appropriately can help in managing risk. Which one of the following statements is correct with respect to the classifications of risk? Select one:

Classifying risk appropriately can help in managing risk. Which one of the following statements is correct with respect to the classifications of risk? Select one:

Risk classifications are mutually exclusive, and only one can be applied to any given risk.

Usually, pure risks and speculative risks can be managed using the same techniques.

A pure risk is a chance of loss or no loss, but no chance of gain.

Insurance deals primarily with speculative risk, rather than with pure risk.

Classifying risk appropriately can help in managing risk. Which one of

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Number them Ma ne dividend growth model: assumes that dividends increase at a constant rate forever II. can be used to compute a stock price at any point in time. III. can be used to value stocks...

51. Corporate officers and boards of directors have the ultimate responsibility for ensuring that corporations meet or exceed legal and regulatory requirements. Which one of the following statements...

Which behavior is this behavior by an acquisition stakeholder? Despite multiple requests from the Program Manager, the financial management representative has failed to provide historic spend...

An insurer's governance, risk, and compliance programs create rules, processes, and controls that support the insurer's operating policies and strategic goals. Which one of the following statements...

Risk can be classified as subjective or objective. Which one of the following statements is correct with respect to these risk classifications? Select one: Individuals' subjective perception of risk...

1) Healthy Foods just paid its annual dividend of $1.62 a share. The firm recently announced that all future dividends will be increased by 2.1 percent annually. What is one share of this stock worth...

The effects of historical environmental changes such as inflation, regulatory changes, and improved safety standards, are projected for ratemaking through Available answer options Select only one...

The emerging technologies applied to risk assessment and control link the physical domain to the virtual domain. Together, these domains linked by the emerging technologies create a Select one: A ....

Organizations use key risk indicators ( KRIs ) to plan for and respond to risk. Which one of the following statements is correct with respect to KRIs? Select one: A . An organization s risk criteria,...

What conditions are required for valid large-sample inferences about d? Small sample inferences?

If it is managed efficiently, Remel Inc. will have assets with a market value of $50 million, $100 million, or $150 million next year, with each outcome being equally likely. However, managers may...

Question Content Area In year 1 and with $ 1 0 0 , 0 0 0 , Ronald establishes a joint savings account with his cousin, Allison. In year 2 , Allison withdraws the $ 1 0 0 , 0 0 0 and leaves the...

TOR PRINTER VERSION BACK Multiple Choice Question 67 For its inspecting cost pool, Ellsworth, Inc. expected overhead cost of $420000 and 4000 inspections. The actual overhead cost for that cost pool...