RMIN 4000 Ragin Test 1 Questions &Answers 100% Verified!
5 views 0 purchase
Course
RMIN 4000 Ragin
Institution
RMIN 4000 Ragin
RMIN 4000 Ragin Test 1 Questions &Answers 100% Verified!risk - ANSWER-a calculated possibility of a negative outcome (loss and probability)
possibility - ANSWER-a probabilistic outcome that is known or estimated
loss - ANSWER-must be quantifiable, typically in dollar amounts
pure risk - AN...
RMIN 4000 Ragin Test 1 Questions &Answers 100% Verified!
risk - ANSWER-a calculated possibility of a negative outcome (loss and probability)
possibility - ANSWER-a probabilistic outcome that is known or estimated
loss - ANSWER-must be quantifiable, typically in dollar amounts
pure risk - ANSWER-risk with only two future potential states of the world (ex. flood, time of death, cancer)
speculative risk - ANSWER-risk with three potential states of the world: loss, break even, or gain (ex. investments, gambling)
moral hazard - ANSWER-idea that if you have insurance, you are more likely to take larger risks and change your behavior (ex. bugatti veyron, RAND Health Insurance Experiment - 1984)
fundamental risk - ANSWER-risk that every firm/person in a sample face at the same time and to a similar extent (ex. inflation, unemployment, major catastrophes)
systemic risk - ANSWER-instability in the financial system caused by interdependency between players and the market
particular risk - ANSWER-risk that only applies to one or a small number of people/firms
at the same time (ex. fire, theft, collision)
risk averse - ANSWER-don't like risk, will pay money to offload risk
risk seeking - ANSWER-like risk, will pay money to take on risk (ex. skydiving, poker, Google)
frequency of loss - ANSWER-how often do losses happen?
severity of loss - ANSWER-how much are losses in dollar amounts when they do occur?
exposure - ANSWER-the asset that could be lost
perils - ANSWER-the immediate cause of the loss (action verb)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller nursingismylife. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
