I figured it out right after I posted (sorry!): they are called actuaries! Webster Mirriam says an actuary is, "a person who calculates insurance and annuity premiums, reserves, and dividends."
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People who calculate risk are often referred to as actuaries. Actuaries use mathematics, statistics, and financial theory to assess the likelihood of certain events and their potential impact. They play a crucial role in the insurance industry, helping companies manage risk and make informed decisions.
Risk free rate of return or risk free return is calculated as the return on government securities of the same maturity.
Selling calls or puts have unlimited risk, where as buying calls or puts have a maximum risk of 100%. For instance, selling a call gives you unlimited risk because there is no ceiling on how high the price can go. However buying a call has a maximum risk of 100% of the premium you pay, this happens if you let the option expire.
The market rate of interest formula used to calculate the cost of borrowing money is: Market Rate of Interest Risk-Free Rate Risk Premium.
It is the risk which is due to the factors which are beyond the control of the people working in the market and that's why risk free rate of return in used to just compensate this type of risk in market. This is the risk other than systematic risk and which is due to the factors which are controllable by the people working in market and market risk premium is used to compensate this type of risk. Total Risk = Systematic risk + Unsystematic Risk
It is the risk in financial market or in market general which exists due to factors which are beyond the control of humans or the people working in market and that;s why risk free rate use in market is only exists there to protect the investors from that systemetic risk. This is the risk other than systematic risk and which is due to factors directly controllable by the people dealing in market and market risk premium rate is paid due to compensate this type of unsystematic risk in market. Total Risk = Systematic Risk + Unsystematic Risk