Risk Is the Probability That a Harm Will Occur and It

question 68

Multiple Choice

Risk is the probability that a harm will occur and it is typically measured on a scale that ranges between:

• A) minus one and absolute certainty.
• B) minus one to plus one.
• C) zero and absolute certainty.
• D) zero to ten.

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Definitions:

Account

A document detailing all the transactions related to a particular element within the accounting equation.

Ordinary Annuity

Invariable payments issued at the terminal of consecutive intervals over an exact length of existence.

Nominal Interest

The rate of interest before adjustments for inflation, as opposed to real interest rates which are adjusted.

Effective Rate

The actual annual interest rate that is earned or paid on an investment, taking compounding into account.