100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
RMIN 4000 uga test 1 Questions and Correct Answers | Latest Update $12.49
Add to cart
Quickly navigate to
Preview
  2.  
  3. RMIN 4000
  4.  
  5. RMIN 4000

Exam (elaborations)

RMIN 4000 uga test 1 Questions and Correct Answers | Latest Update
 0 purchase
  • Course
  • RMIN 4000
  • Institution
  • RMIN 4000

types of risk -:- -pure risk -speculative risk -diversifiable risk -nondiversifiable risk -enterprise risk -systemic risk risk -:- uncertainty concerning the occurrence of a loss uncertainty -:- probabilities cannot be estimated loss exposure 2 | P a g e | G r a d e A + | 2 0 2 ...

[Show more]

Preview 4 out of 31  pages

Document information

  • September 20, 2024
  • 31
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • rmin 4000 uga test 1 questions and correct answers
  • types of risk pure risk speculative risk

Written for

  • RMIN 4000
  • RMIN 4000

Seller

avatar-seller
TestTrackers

Reviews received

Content preview

2024 /2025 | © copyright | This work may not be copied for profit gain Excel!




RMIN 4000 uga test 1 Questions and Correct
Answers | Latest Update
types of risk


✓ -:- -pure risk

✓ -speculative risk

✓ -diversifiable risk

✓ -nondiversifiable risk

✓ -enterprise risk

✓ -systemic risk




risk


✓ -:- uncertainty concerning the occurrence of a loss




uncertainty


✓ -:- probabilities cannot be estimated




loss exposure




1|P a g e | G r a d e A + | 2 0 2 0 2 5

,2024 /2025 | © copyright | This work may not be copied for profit gain Excel!



✓ -:- any situation or circumstance in which a loss is possible, regardless

of whether a loss actually occurs

example: earthquake or flood causing damage to a manufacturing plant




objective risk (degree of risk)


✓ -:- the relative variation of actual loss from expected loss

example:10,000 houses insured of a long period of time and on average 100 houses burn

each year, however it would be rare for exactly 100 to burn each year




law of large numbers


✓ -:- as the number of exposure units increases, the more closely the

actual loss experience will approach the expected loss experience




example: as the number of homes under observation increases, the greater is the degree of

accuracy in predicting the proportion of homes that will burn




subjective risk (perceived risk)


✓ -:- uncertainty based on a person's mental condition or state of mind



2|P a g e | G r a d e A + | 2 0 2 0 2 5

,2024 /2025 | © copyright | This work may not be copied for profit gain Excel!




example: driver with previous convictions for drunk driving tries to drive home and

wonders if he will get arrested by the police or not




chance of loss


✓ -:- the probability that an event will occur




objective probability


✓ -:- the long run relative frequency of an event based on the assumptions

of an infinite number of observations and of no change in the un derlying

conditions




two ways objective probability can be determined


✓ -:- 1) deductive reasoning (priori probabilities): probability of getting a

head from the toss of a perfectly balanced coin is 1/2 bc there are two

sides

2) inductive reasoning: the probability that a person age 21 will die before age 26 cannot be

logically deduced, life insurers can estimate the probability of death and sell a 5 year life

insurance policy for a 21 yr old


3|P a g e | G r a d e A + | 2 0 2 0 2 5

, 2024 /2025 | © copyright | This work may not be copied for profit gain Excel!




subjective probability


✓ -:- the individual's personal estimate of the chance of loss

example: people who buy a lottery ticket on their birthday may believe it is their lucky day

and overestimate the small chance of winning




objective risk


✓ -:- the relative variation of actual loss from expected loss




peril


✓ -:- the cause of loss

example: house burns down, peril is the fire




hazard


✓ -:- condition that creates or increases the frequency or severity of loss




4 types of hazards




4|P a g e | G r a d e A + | 2 0 2 0 2 5

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 TestTrackers. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69052 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$12.49
  • (0)
Add to cart
Added