SELECT TRUE OR FALSE FOR THE FOLLOWING ANSWER A total loss to the car that could happen to a driver as a result of a collision is an example of pure risk True False Dense fog is the cause of loss that could increase the severity of an automobile accident True False Financial risk is speculative risk True False Some speculative risks are insurable True False Risk averse individuals will not assume higher risk unless they are promised with a higher rate of return True False Risk taking individuals tend to perceive higher risk inherent in a given activity relative to risk averse individuals True False A student who has skipped many classes and not studied the course material was surprised to learn that there was a test when he showed up for class The students strong belief that he will not pass the test is called subjective probability True False A student who has skipped many classes and not studied the course material was surprised to learn that there was a test when he showed up for class The students strong belief that he will not pass the test is called subjective probability True False The possibility of not meeting the annual sales target of one million dollar set by the top management is an example of strategic risk True False Having 10,000 exposure units as compared to 1,000,000 exposure units will enable the future loss experience can be predicted more accurately True False In the same situation, an individual with high subjective risk often has higher risk perception, so he will estimate a bigger chance of loss relative to an individual with low subjective risk True False Objective risk refers to the severity aspect of loss meanwhile subjective risk refers to the frequency aspect of loss True False Combing risks that are perfectly and positively correlated cannot reduce the overall risk of the business entity True False The 20 ruling of UUM allowing students to be absent from class, requiring only 80 class attendance for students to be eligible to sit for quiz is an example of legal hazard True False The possibility of a business entitys computer system being hacked True False

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Question: SELECT TRUE OR FALSE FOR THE FOLLOWING ANSWER A total loss to the car that could happen to a driver as a result of a

SELECT TRUE OR FALSE FOR THE FOLLOWING ANSWER

A total loss to the car that could happen to a driver as a result of a collision is an example of pure risk.	True	False
Dense fog is the cause of loss that could increase the severity of an automobile accident.	True	False
Financial risk is speculative risk.	True	False
Some speculative risks are insurable.	True	False
Risk-averse individuals will not assume higher risk unless they are promised with a higher rate of return.	True	False
Risk-taking individuals tend to perceive higher risk inherent in a given activity relative to risk-averse individuals.	True	False
A student who has skipped many classes and not studied the course material was surprised to learn that there was a test when he showed-up for class. The students strong belief that he will not pass the test is called subjective probability.	True	False
A student who has skipped many classes and not studied the course material was surprised to learn that there was a test when he showed-up for class. The students strong belief that he will not pass the test is called subjective probability.	True	False
The possibility of not meeting the annual sales target of one million dollar set by the top management is an example of strategic risk.	True	False
Having 10,000 exposure units as compared to 1,000,000 exposure units will enable the future loss experience can be predicted more accurately.	True	False
In the same situation, an individual with high subjective risk often has higher risk perception, so he will estimate a bigger chance of loss relative to an individual with low subjective risk.	True	False
Objective risk refers to the severity aspect of loss meanwhile subjective risk refers to the frequency aspect of loss.	True	False
Combing risks that are perfectly and positively correlated cannot reduce the overall risk of the business entity.	True	False
The 20% ruling of UUM allowing students to be absent from class, requiring only 80% class attendance for students to be eligible to sit for quiz is an example of legal hazard.	True	False
The possibility of a business entitys computer system being hacked	True	False

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