Which Statement Best Describes the Concept of Risk

question 36

Multiple Choice

Which statement best describes the concept of risk?

• A) Risk describes a situation where there is not just one possible outcome, but an array of potential returns.
• B) Under risk situations there can only be one possible outcome, but with array of potential returns.
• C) Under uncertain situations, future outcomes can be expected to have only one value.
• D) Under a situation of risk, future outcomes can be expected to have only one value.

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Definitions:

ERISA

The Employee Retirement Income Security Act, a federal law that sets standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.

Bilateral Amputee

An individual who has lost or is missing both arms or both legs, typically as a result of trauma, disease, or congenital conditions.

Risk-based Insurance

Insurance policies where premiums vary according to the risk level of the policyholder, commonly used in health and auto insurance.

Americans with Disabilities Act

A legal statute designed to prevent discrimination towards people with disabilities in various public sectors.