what does spread the risk mean
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- Definition of spread of risk. : the extent to which an insurance company by selecting diversified and independent risks that are fairly uniform in size and sufficiently large in number can predict the losses thereon with reasonable accuracy by the law of averages.
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Handling Risk Risk avoidance is the elimination of risk. You can avoid the risk of a loss in the stock market by not buying or shorting stocks; the risk of a venereal disease can be avoided by not having sex, or the risk of divorce, by not marrying; the risk of having car trouble, by not having a car.
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What is 'Speculative Risk' What is 'Speculative Risk'. Speculative risk is a category of risk that, when undertaken, results in an uncertain degree of gain or loss. All speculative risks are made as conscious choices and are not just a result of uncontrollable circumstances. Speculative risk is the opposite of pure risk.
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What is an Option Spread? A spread is a position that consists of two options. The spread trader sells options at one strike price and buys options on the same stock at a different strike price. Both options are calls or both options are puts.
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Risk management The term of 'risk transfer' is often used in place of risk sharing in the mistaken belief that you can transfer a risk to a third party through insurance or outsourcing. In practice if the insurance company or contractor go bankrupt or end up in court, the original risk is likely to still revert to the first party.
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Definition risk map/mapping A graphical depiction of a select number of a company's risks designed to illustrate the impact or significance of risks on one axis and the likelihood or frequency on the other. Risk mapping is used to assist in identifying, prioritizing, and quantifying (at a macro level) risks to an organization. This representation often takes the form of a two-dimensional grid with frequency (or likelihood of occurrence) on one axis and severity (or degree of financial impact) on the other axis; the risks that fall in the high-frequency/high-severity quadrant are given priority risk management attention.
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risk (insurance) 1  chance of a loss or other event on which a claim may be filed. 2  the type of such an event, such as fire or theft. 3  the amount of the claim should such an event occur. 4  a person or thing considered with respect to the characteristics that may cause an insured event to occur.
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- The definition of A Risk is something that can be potentially dangerous to to self or others. Risk behaviors can be defined as a pattern of behaviors that can be dangerous to … self or others.isk behavior is behavior or other factor that places a person at  risk for disease. These disease can include HIV/AIDS, diabetes,  cancer, etc.
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risk A risk is not an uncertainty (where neither the probability nor the mode of occurrence is known), a peril (cause of loss), or a hazard (something that makes the occurrence of a peril more likely or more severe). 5. Securities trading: The probability of a loss or drop in value. Trading risk is divided into two general categories: (1) Systemic risk affects all securities in the same class and is linked to the overall capital-market system and therefore cannot be eliminated by diversification. Also called market risk. (2) Nonsystematic risk is any risk that isn't market-related or is not systemic.
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Pure vs. Speculative Risk Pure risk, also known as absolute risk, is insurable. Speculative Risk: Three possible outcomes exist in speculative risk: something good (gain), something bad (loss) or nothing (staying even). Gambling and investing in the stock market are two examples of speculative risks.
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What is 'Risk' Risk includes the possibility of losing some or all of the original investment. Different versions of risk are usually measured by calculating the standard deviation of the historical returns or average returns of a specific investment. A high standard deviation indicates a high degree of risk.
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- e. the type of loss against which a policy is drawn. 3. to expose to the chance of injury or loss; hazard: to risk one's life. 4. to venture upon; take the chance of: to risk a fall. at risk, in imminent danger of injury, damage, or loss: homes at risk of flooding.. the type of loss against which a policy is drawn. 3. to expose to the chance of injury or loss; hazard: to risk one's life. 4. to venture upon; take the chance of: to risk a fall. at risk, in imminent danger of injury, damage, or loss: homes at risk of flooding.
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TYPES OF RISK Pure risk is a situation that holds out only the possibility of loss or no loss or no loss. For example, if you buy a new textbook, you face the prospect of the book being stolen or not being stolen. The possible outcomes are loss or no loss.
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- Spread betting is a derivatives product that allows you to trade on the price movements of thousands of financial markets including indices, shares, currencies, commodities and more.You can use spread bets to speculate on price movements irrespective of whether the markets are rising or falling.pread betting is a margined product that only requires you to deposit a small percentage of the full value of your position. This means that the potential for profits, or losses, from an initial capital outlay is significantly higher than in traditional trading.
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- spread through/across/around sth A recruitment crisis is currently spreading through the public sector. spread to Job cuts are spreading to big manufacturers. › [T] to share something among a group of people or things, so that no one person or thing has too much: spread the costs/risks/load Include different types of income-yielding investments in your portfolio in order to spread the risk. › [I or T] to cover a particular area or a number of different areas, or to make something or someone do this:
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risk 2 : someone or something that creates or suggests a hazard. 3a : the chance of loss or the perils to the subject matter of an insurance contract; also : the degree of probability of such lossb : a person or thing that is a specified hazard to an insurerc : an insurance hazard from a specified cause or source war risk.
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Risk Insurance is a risk treatment option which involves risk sharing. It can be considered as a form of contingent capital and is akin to purchasing an option in which the buyer pays a small premium to be protected from a potential large loss.
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- In practice, however, the risk. premium is mostly used to estimate the expected return on equity (also referred to as the cost of. equity). Bond markets rely on their own risk premium concept, the credit spread, which is the.
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- What Is Risk Transfer? Risk transfer is a risk management and control strategy that involves the contractual shifting of a pure risk from one party to another. One example is the purchase of an insurance policy, by which a specified risk of loss is passed from the policyholder to the insurer. Other examples include hold-harmless clauses,
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Absolute risk reduction Absolute risk reduction. In epidemiology, the absolute risk reduction, risk difference or absolute effect is the change in the risk of an outcome of a given treatment or activity in relation to a comparison treatment or activity. It is the inverse of the number needed to treat. In general, absolute risk reduction is the difference between one treatment comparison group's event rate and another comparison group’s event rate. The difference is usually calculated with respect to two treatments A and B, with A ...
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absolute risk Absolute Risk. Epidemiology The observed or calculated probability of occurrence of an event, X, in a population related to exposure to a specific hazard, infection, trauma; the number of persons suffering from a disease when the exposed population is known with certainty. Cf Relative risk.
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Long Put Butterfly The long put butterfly spread is a limited profit, limited risk options trading strategy that is taken when the options trader thinks that the underlying security will not rise or fall much by expiration.he long put butterfly spread is a limited profit, limited risk options trading strategy that is taken when the options trader thinks that the underlying security will not rise or fall much by expiration.
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What Is Risk Pooling in Insurance? Risk pooling is essential to the concept of insurance. The earliest known insurance policies were written some 5,000 years ago, to protect shippers against the loss of their cargo and crews at sea. Any one of them would be devastated by the loss of a ship.
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- A spread simply refers to the layout of your cards. A Tarot spread is a configuration or pattern of cards. That pattern provides the framework for a tarot reading. Further, each position of the tarot cards in a spread has a specific meaning. Your reading will use the placement or position of the cards within an identified theme.
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Definition: The concise Oxford Dictionary defines risk (noun) in terms of a hazard, chance, bad consequences, loss, etc., exposure to mischance. It defines risk (verb) in terms of: to expose to chance of injury or loss, venture on, accept the chance of.he concise Oxford Dictionary defines risk (noun) in terms of a hazard, chance, bad consequences, loss, etc., exposure to mischance. It defines risk (verb) in terms of: to expose to chance of injury or loss, venture on, accept the chance of.
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The Basics of the Bid-Ask Spread You've probably heard the terms spread or bid and ask spread before, but you may not know what they mean or how they relate to the stock market. The bid-ask spread can affect the price at which a purchase or sale is made - and an investor's overall portfolio return. What this means is that if you want to dabble in the equities markets, you need to become familiar with this concept.