An Earthquake Is an Example of A(n)

question 2

Multiple Choice

An earthquake is an example of a(n)

• A)moral hazard.
• B)peril.
• C)physical hazard.
• D)objective risk.

---

Definitions:

Negative Earnings Surprise

An event where a company's reported earnings are below the expectations of analysts, often leading to a decline in its stock price.

Stock Returns

The income generated from the investment in shares, comprised of dividends received and capital gains or losses.

Exit Price Approach

A valuation method that determines the price a seller would receive to sell an asset or transferred liability.

Transaction Costs

The expenses associated with buying or selling goods, services, or financial instruments, which may include commissions, fees, and bid-ask spreads.