Uncertainties that are not quantifiable:
A)Are what we define as risk
B)Are factored into the price of an asset
C)Cannot be priced
D)Are benchmarks against which quantifiable risks can be assessed

Question

Quizplus · Accepted Answer

Uncertainties that are not quantifiable cannot be priced, as they do not have a measurable impact on the value of an asset or the likelihood of an event occurring. While they may be factored into the price of an asset as a perceived risk, this is a subjective assessment and not a true quantification of the uncertainty. Similarly, they cannot be used as benchmarks for assessing quantifiable risks, as they do not provide a useful comparison point. Therefore, the best choice is C, which accurately describes the nature of non-quantifiable uncertainties.

Uncertainties That Are Not Quantifiable