Which of the Following Is Not an Example of a Static

question 7

Multiple Choice

Which of the following is not an example of a Static risk?

• A)Earthquake.
• B)Flood.
• C)Recession.
• D)Sinkhole.

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Definitions:

Huge Success

An achievement or outcome that significantly exceeds expectations or objectives, often measured in terms of profitability, popularity, or effectiveness.

Bubble

A bubble refers to a market condition where the prices of assets escalate rapidly beyond their fundamentally justified values due to investor expectations and exuberance, often followed by a sharp decline.

Prices

The amount of money required to purchase goods or services, influenced by factors like supply and demand, production costs, and market competition.

Utility-maximizing Investment

An investment strategy aimed at selecting the portfolio that provides the highest level of satisfaction or utility to the investor, based on their risk preference and return expectations.