RMIN 5950 Quiz 1 Questions With Correct
Answers A+ Graded 2026/2027
pure risk - correct answera chance of loss or no loss, but no chance of gain
pure risk example - correct answeruncertainty of damage to property by fire or flood
speculative risk - correct answera chance of loss, no loss, or gain
speculative risk example - correct answerbusiness ventures or investment decisions
particular risk - correct answeronly impacts an individual person or business or a small group of
people or businesses
particular risk example - correct answerauto accidents, building fires, worker injuries
fundamental risk - correct answerimpacts a large number of people or companies or even the
economy
fundamental risk example - correct answerhurricanes, earthquakes, terrorist attacks
static risk - correct answerstem from an unchanging environment that is in stable equilibrium
can be pure or speculative
pure static risk example - correct answeruncertainties due to random events like lightning,
windstorms, death
, speculative static risks - correct answerbusiness undertakings in a stable economy
dynamic risks - correct answerproduced because of changes in society
dynamic risk example - correct answerurban unrest, complex technology, changing attitudes of
legislatures and courts about a variety of issues
subjective risk - correct answerpsychological uncertainty that arises from an individual's mental
attitude or state of mind
can be pure or speculative and static or dynamic
provides a way to interpret the behavior of individuals faced with seemingly identical situations
yet arriving at different conclusions
objective risk - correct answermore precisely observable and measurable than subjective risk
most often used in connection with pure static risks
risk aversion - correct answeravoiding risk
the reason why someone would be willing to pay more than the expected loss to get rid of a risk
if because they are risk averse
property risks - correct answerall businesses and individuals that own, rent, or use property are
exposed to the risk that the property may be damaged, destroyed, or stolen
Answers A+ Graded 2026/2027
pure risk - correct answera chance of loss or no loss, but no chance of gain
pure risk example - correct answeruncertainty of damage to property by fire or flood
speculative risk - correct answera chance of loss, no loss, or gain
speculative risk example - correct answerbusiness ventures or investment decisions
particular risk - correct answeronly impacts an individual person or business or a small group of
people or businesses
particular risk example - correct answerauto accidents, building fires, worker injuries
fundamental risk - correct answerimpacts a large number of people or companies or even the
economy
fundamental risk example - correct answerhurricanes, earthquakes, terrorist attacks
static risk - correct answerstem from an unchanging environment that is in stable equilibrium
can be pure or speculative
pure static risk example - correct answeruncertainties due to random events like lightning,
windstorms, death
, speculative static risks - correct answerbusiness undertakings in a stable economy
dynamic risks - correct answerproduced because of changes in society
dynamic risk example - correct answerurban unrest, complex technology, changing attitudes of
legislatures and courts about a variety of issues
subjective risk - correct answerpsychological uncertainty that arises from an individual's mental
attitude or state of mind
can be pure or speculative and static or dynamic
provides a way to interpret the behavior of individuals faced with seemingly identical situations
yet arriving at different conclusions
objective risk - correct answermore precisely observable and measurable than subjective risk
most often used in connection with pure static risks
risk aversion - correct answeravoiding risk
the reason why someone would be willing to pay more than the expected loss to get rid of a risk
if because they are risk averse
property risks - correct answerall businesses and individuals that own, rent, or use property are
exposed to the risk that the property may be damaged, destroyed, or stolen
