RMIN 4000 Exam 1 Brown Questions &Answers 100% Accurate!

Textbook definition of RISK - ANSWER-Uncertainty concerning the occurrence of a loss Better definition of RISK - ANSWER-A calculated possibility of a negative outcome Calculated Possibility - ANSWER-0 = Impossible event (NO RISK) 0.5 = Highest Risk (Most Uncertainty) 1 = 100% Certain Event (NO RISK Negative Outcome - ANSWER-Loss Losses must be __________? - ANSWER-Quantifiable Pure Risk States - ANSWER-Loss or No Loss Examples of Pure Risks - ANSWER-Fire, Cancer, Dog bites a visitor Speculative Risk States - ANSWER-Loss No Loss/No Gain Gain Examples of speculative risks - ANSWER-Investment, Gambling, Drinking Frequency answers what question? - ANSWER-How often does a loss occur The number of losses that occur in a specified time period Probability of a loss - ANSWER-Frequency