The Key Distinction Between Risk and Uncertainty Is

question 40

Multiple Choice

The key distinction between risk and uncertainty is

• A)risk cannot be quantified,priced or traded
• B)uncertainty refers to not knowing possible outcomes or their probabilities
• C)uncertainty is modeled by listing the possible outcomes and assigning probabilities to the outcomes
• D)risk has to do with not knowing the probability distribution of a random variable

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Definitions:

Introverted

Characterized by a preference for focusing on internal thoughts and feelings rather than seeking external stimulation.

Extroverted

A personality trait characterized by outgoingness, sociability, and a preference for external stimulation over solitary activities.

Proximity

The physical or psychological closeness between people, objects, or ideas, influencing their interaction and relationships.

Fundamental Attribution Error

The tendency to underestimate situational influences and overestimate personal traits as causes of others' behaviors.