Knightian risk refers to situations in which
A) The probabilities are not known with certainty, but the set of possible outcomes are known.
B) The outcome is not known with certainty, but the probabilities of each outcome and the set of outcomes are known.
C) The probability and the outcome are known with certainty.
D) Neither the probabilities nor the set of outcomes are known with certainty.

Question

Quizplus · Accepted Answer

The Answer of Knightian risk refers to situations in which
A) The probabilities are not known with certainty, but the set of possible outcomes are known.
B) The outcome is not known with certainty, but the probabilities of each outcome and the set of outcomes are known.
C) The probability and the outcome are known with certainty.
D) Neither the probabilities nor the set of outcomes are known with certainty.

Knightian Risk Refers to Situations in Which