100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
RMIN 4000 Exam Questions and Answers 100% Verified. $12.99   Add to cart

Exam (elaborations)

RMIN 4000 Exam Questions and Answers 100% Verified.

 3 views  0 purchase
  • Course
  • RMIN 4000
  • Institution
  • RMIN 4000

RMIN 4000 Exam Questions and Answers 100- Verified.

Preview 2 out of 7  pages

  • October 31, 2024
  • 7
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • RMIN 4000
  • RMIN 4000
avatar-seller
Wisdoms
RMIN 4000 Exam Questions and Answers 100%
Verified




Risk - (correct answer) -Uncertainty concerning the occurrence of a loss
io io io io io io io io io io




Loss exposure - (correct answer) -any situation or circumstance in which a loss might occur (regardless
io io io io io io io io io io io io io io io




of if it happens or not)
io io io io io io




- ex: When we think about if we might get sick.. my body is the exposure. If I have a business and 10
io io io io io io io io io io io io io io io io io io io io io io




buildings.. My buildings are exposures.
io io io io io




Objective risk - (correct answer) -relative variation of actual loss from expected loss.
io io io io io io io io io io io io




Law of large numbers - (correct answer) -as the # of exposures increases the more closely the actual
io io io io io io io io io io io io io io io io io




loss will get to the expected.
io io io io io io




Pure risk - (correct answer) -there's no up-side to the risk (nothing good comes from it), chance of loss
io io io io io io io io io io io io io io io io io io




or chance of no loss
io io io io io




Speculative risk - (correct answer) -There is a chance for a win or a gain, you're creating a risk.
io io io io io io io io io io io io io io io io io io




Ex: golden balls (split or steal) or gambling or buying a house - when we go to sell it, there could be a
io io io io io io io io io io io io io io io io io io io io io io




gain or a sell.
io io io io




Subjective risk - (correct answer) -uncertainity based on a person's mental condition or state of mind.
io io io io io io io io io io io io io io io




How we feel about the loss.
io io io io io io




Ex:$500 is different for a poor person and a rich person
io io io io io io io io io io




- sister's afraid of water and atkinson is afraid of ziplining
io io io io io io io io io io




- the risks are the same, but affects them differently (different way of handling it)
io io io io io io io io io io io io io io




Chance of loss - (correct answer) -the probability that an event will occur
io io io io io io io io io io io io




Objective probability - (correct answer) -the long-run relative frequency of an event based on the
io io io io io io io io io io io io io io




assumptions of an infinite # of observations and no change in underlying conditions
io io io io io io io io io io io io io




Subjective probability - (correct answer) -the individual's personal estimate of the chance of loss.
io io io io io io io io io io io io io

, Ex: sending annthrax in the mail.
io io io io io io




- this cost companies a lot of money, when in reality only 5 letters were actually sent with annthrax in
io io io io io io io io io io io io io io io io io io io




them. - so this probably wasn't a huge risk, but it was in light of 9/11
io io io io io io io io io io io io io io io io




Risk Averse - (correct answer) -Avoid Risk if and when possible. Will pay extra to remove risk from a
io io io io io io io io io io io io io io io io io io




set of outcomes.
io io io




Risk is scary io io




Risk Seeker / Taker - (correct answer) -Enjoys risk. Will "gamble" on a big payout and not take many
io io io io io io io io io io io io io io io io io io




precautions (would not pay anywhere close to expected loss) to avoid risk.
io io io io io io io io io io io io




Risk Tolerant / Risk Neutral - (correct answer) -- Risk is just right. Will evaluate risk and will strive to
io io io io io io io io io io io io io io io io io io io




"pay" no more or less than the expected loss to avoid the risk.
io io io io io io io io io io io io io




- The value of risky situation is the expected loss
io io io io io io io io io




Peril - (correct answer) -the cause of loss
io io io io io io io




Hazard - (correct answer) -a condition that creates or increases the frequency or severity of loss.
io io io io io io io io io io io io io io io io




4 main types: physical, moral, attitudinal, legal
io io io io io io




Physical hazard - (correct answer) -- physical condition that increases the frequency or severity of loss
io io io io io io io io io io io io io io io




- ex: icy roads, defective wiring
io io io io io




Moral Hazard - (correct answer) -- dishonesty or character defects in an individual that increases the
io io io io io io io io io io io io io io io




frequency or severity of loss
io io io io io




- ex: insurance fraud, burning down own house to collect
io io io io io io io io io




Morale hazard - (correct answer) -- carelessness or indifference to a loss, which increases the
io io io io io io io io io io io io io io




frequency or severity of loss
io io io io io




- ex: leaving keys in unlocked car, leaving door unlocked
io io io io io io io io io




Legal hazard - (correct answer) -- characteristics of legal system or regulatory environment that
io io io io io io io io io io io io io




increase the frequency or severity of loss
io io io io io io io




- ex: large damage rewards in liability lawsuits
io io io io io io io




Particular/Diversifiable Risk - (correct answer) -A risk that affects only individuals as individuals. io io io io io io io io io io io io




Fundamental/Systematic/Non-diversifiable Risk - (correct answer) -Risk that affects a large number of io io io io io io io io io io io




individuals or the entire economy.
io io io io io

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 Wisdoms. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67866 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$12.99
  • (0)
  Add to cart