Which of the Following Has a Low Risk of Tsunamis

question 21

Multiple Choice

Which of the following has a low risk of tsunamis?

• A) Hawaii
• B) Brazil
• C) India
• D) Alaska
• E) Japan

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Definitions:

Risk Premium

The additional return expected by an investor for taking on a higher risk compared to a risk-free asset.

Total Risk

The complete range of uncertainties including market, credit, liquidity, and operational risks that can affect the performance and valuation of investments.

Portfolio Concentration

The over-representation of a particular asset class, sector, or stock within an investment portfolio, leading to heightened risk.

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in a year or less, representing a secure investment.