true or false Having 10,000 exposure units as compared to 1,000,000 exposure units will enable the future loss experience can be predicted more accurately.  Risk-taking individuals tend to perceive higher risk inherent in a given activity relative to risk-averse individuals  Risk-taking individuals prefer high return and they are willing to assume much higher level of risk. The 20% ruling of UUM allowing students to be absent from class, requiring only 80% class attendance for students to be eligible to sit for final exam is an example of legal hazard.

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Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.