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Vilka [71]
3 years ago
5

The key distinction between risk and uncertainty is a. ​Risk cannot be quantified, priced or traded b. ​Uncertainty is modeled b

y listing the possible outcomes and assigning probabilities to the outcomes c. ​Risk has to do with not knowing the probability distribution of a random variable d. ​Uncertainty refers to not knowing possible outcomes or their probabilities
Social Studies
1 answer:
klasskru [66]3 years ago
6 0

Answer: Option (D).

Explanation: Uncertainty is a condition where there is no knowledge about the future events. The key difference between risk and uncertainty is that uncertainty refers to not knowing possible outcomes or their probabilities while risk can be measured and quantified, through theoretical models. Risk is the potential for uncontrolled loss of something of value while Uncertainty is a potential, unpredictable, and uncontrollable outcome, risk is an aspect of action taken in spite of uncertainty.

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