2. ____________is often described as the likelihood of an unfavorable event  (e.g., a decline in the market value of the stock market) and the size of the consequence that outcome would have.

3. A central theme of the standard finance school involves the _________

4. The macro-level (big scale) evaluation of risk that takes into account all of the participants within the markets forms the basis of the standard financial perspective, which integrates the _________. (Ricciardi,2008a).

5. The __________, which assumes that people are risk-averse and choose the best option over a gamble with an equivalent payout, is a key component of the normative model and the idea of rational decision-making under uncertainty. In other words, it is assumed that individual investors will maximize their expected utility.

6. American economist Harry Markowitz pioneered this theory in his paper "Portfolio Selection," which was published in the Journal of Finance in 1952.

7. The_______________ describes the relationship between systematic risk, or the general perils of investing, and expected return for assets, particularly stocks.

8. ________ is used to measure the risk of a security minus the company's debt.

9. The standard finance perspective of risk incorporates the objective (quantitative) aspects of risk whereas the ________ considers additional subjective (qualitative) factors.

10. According to the ________,the reason investors act in this manner when evaluating risk is based on the tenets of bounded rationality, loss aversion, and prospect theory.