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 in a given set of circumstances is typically much

higher than the objective risk.

Subjective risk can exist even where objective risk does not.

Risk managers focus on objective risk and attempt to avoid allowing subjective risk to

affect their decisions.

Subjective risk is risk associated with individuals; objective risk is risk associated with

objects or things.