risk

is available instantaneously, which means that change, and subsequent market reactions, occur very quickly

refers to the probability of loss

is the possibility of loss

arises as a result of exposure.

is a process to deal with the uncertainties resulting from financial markets.

contains assets whose returns are dissimilar, in other words, weakly or negatively correlated with one another

Diversification among __________ may reduce the risk that unexpected events adversely impact the organization through defaults.

Diversification among ____________ reduces the magnitude of loss if one issuer fails.

Diversification of __________________ reduces the possibility that an organization will have its business adversely affected by changes outside management’s control.

is the business of seeking assets or events that offset, or have weak or negative correlation to, an organization’s financial exposures.