RMIN 4000 UGA, Po-Lin Wang, Exam 1
Questions and Answers Graded A+
Risk - Correct answer--Uncertainty concerning the occurrence of a loss.
-In economics and finance, the term is used in situations where the probabilities of
possible outcomes are known
Uncertainty - Correct answer-Used in situations where such probabilities cannot be
estimated
Loss Exposure - Correct answer-Any situation or circumstance in which a loss is
possible, regardless of whether a loss occurs
Objective Risk - Correct answer-The relative variation of actual loss from expected
loss
Subjective (Perceived) Risk - Correct answer-Uncertainty based on a person's
mental condition or state of mind
Chance of Loss - Correct answer-The probability that an event will occur
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, Objective Probability - Correct answer-The long-run relative frequency of an event
based on the assumptions of an infinite number of observations and of no change
in the underlying conditions
Subjective Probability - Correct answer-The individual's personal estimate of the
chance of loss
Peril - Correct answer-The cause of the loss
Hazard - Correct answer-A condition that increases the frequency or severity of
loss
Physical Hazard - Correct answer-A physical condition that increases the frequency
or severity of loss
Moral Hazard - Correct answer-Dishonesty or character defects in an individual
that increase the frequency or severity of loss
Attitudinal (Morale) Hazard - Correct answer-Carelessness or indifference to a
loss, which increases the frequency or severity of a loss
Legal Hazard - Correct answer-Characteristics of the legal system or regulatory
environment that increase the frequency or severity of losses
Pure Risk - Correct answer-A situation in which there are only the possibilities of
loss or no loss
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Questions and Answers Graded A+
Risk - Correct answer--Uncertainty concerning the occurrence of a loss.
-In economics and finance, the term is used in situations where the probabilities of
possible outcomes are known
Uncertainty - Correct answer-Used in situations where such probabilities cannot be
estimated
Loss Exposure - Correct answer-Any situation or circumstance in which a loss is
possible, regardless of whether a loss occurs
Objective Risk - Correct answer-The relative variation of actual loss from expected
loss
Subjective (Perceived) Risk - Correct answer-Uncertainty based on a person's
mental condition or state of mind
Chance of Loss - Correct answer-The probability that an event will occur
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Objective Probability - Correct answer-The long-run relative frequency of an event
based on the assumptions of an infinite number of observations and of no change
in the underlying conditions
Subjective Probability - Correct answer-The individual's personal estimate of the
chance of loss
Peril - Correct answer-The cause of the loss
Hazard - Correct answer-A condition that increases the frequency or severity of
loss
Physical Hazard - Correct answer-A physical condition that increases the frequency
or severity of loss
Moral Hazard - Correct answer-Dishonesty or character defects in an individual
that increase the frequency or severity of loss
Attitudinal (Morale) Hazard - Correct answer-Carelessness or indifference to a
loss, which increases the frequency or severity of a loss
Legal Hazard - Correct answer-Characteristics of the legal system or regulatory
environment that increase the frequency or severity of losses
Pure Risk - Correct answer-A situation in which there are only the possibilities of
loss or no loss
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
