answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: What is the differences between subjective risk and objective risk?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Statistics

What is subjective risk?

A person's. Mental attitude towards risk.


What is Breslow-Gehan-Wilcoxon Test to compare kaplan curves?

This test evaluates differences between study groups, it allows weighting of time points by the number of cases at risk at each time point


The correlation between an asset's real rate of return and its risk as measured by its standard deviation is usually?

The correlation between an asset's real rate of return and its risk (as measured by its standard deviation) is usually:


What is the difference between risk and exposure?

An exposure consist of the potential financial effect of an event multiplied by its probability of occurrence and risk is with probability of occurrence. Thus an exposure is a risk times its financial consequences.


Distingush between systematic and unsystematic risks which is often regarded as the only relevant risk and why?

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 As systematic risk is beyond the control of people working in market that;s why it is defenately not the relevent risk because anything not controllable is irrelevant and that's why unsystematic risk is the relevant risk because it is in the control of investor to in which security to invest or not.

Related questions

What is subjective risk?

A person's. Mental attitude towards risk.


What are the differences between 'risk' and 'uncertainty'?

Risk is a dangerous choice that a person makes. An uncertainty is how someone feels about the decision.


Differences between pure risk and speculative risk?

pure risk is the a situation in which there is a possibility of loss or no loss while speculative risk thereeither profit or loss


What is the difference between a perceived risk and an actual risk?

A perceived risk is a risk in which one thinks of that might happen before commiting an action involving that risk. An actual risk is a risk that has a better likelihood of happening. For example, getting a splinter is a perceived risk while walking barefoot. However, an actual risk is a car crash.


What is the difference between the traditional risk management and enterprise risk management?

The differences between traditional risk management and enterprise risk management are their strategic applications and performance metrics. Enterprise risk management involves the whole organization while traditional risk management is usually more departmentalized.


What is the meaning and objective of risk management?

Objective Risk Management is not a common term in Risk Management, it's mainly used by companies to promote their Risk Management services by adding the word "Objective" to it. It has no specific meaning.Answer: Risk management is Assessment of risks that arise and then taking safety measures in place to control them and then making sure they work in practice. Its primary objective is to help the daily decision making and implementation process by identifying and managing the uncertainities.


Differences betwenn Builders Risk and Course of Construction Insurance?

The answer is........you spelled the word "BETWEEN" wrong. Can you say "SPELL CHECK"


Discuss the relationship between financial and decision making and risk and return would all financial manageres view risk return tradeoffs similarly?

there is a direct relationship between financial decision making and risk and return. each financial decision made by the financial manager will have implication for the overall risk of the firm and its potential returns. All financial decisions are ultimately subjective in nature regardless of the amount of objective information collected as part of the decision making process. as a result, not all financial managers view risk return trade offs similarly. however it is expected they such decision making will be consistent with the goal of the investors that the financial manager represents. good luck......


What are some subjective signs and symptoms for impaired physical mobility?

Risk for falls


What are Objective questions for disaster management project?

to minimise the risk


Objective type questions and answers in insurance?

risk uncertian


Differences between 'risk assessment' and 'risk perception'?

Risk assessment involves a systematic evaluation of potential risks based on data, analysis, and scientific methods. Risk perception, on the other hand, refers to how individuals or groups subjectively perceive and interpret risks based on factors such as emotions, beliefs, and personal experiences, which may not always align with the objective assessment of risks.