Several types of risk are present in the American economy. For each of the following, identify the type of risk that is present. Explain your answer.
a. The Department of Homeland Security alerts the nation of a possible attack by terrorists.
b. A house may be severely damaged in a fire.
c. A family head may be totally disabled in a plant explosion.
d. An investor purchases 100 shares of Microsoft stock.
e. A river that periodically overflows may cause substantial property damage to thousands of homes in the floodplain.
f. Home buyers may be faced with higher mortgage payments if the Federal Reserve raises interest rates at its next meeting.
g. A worker on vacation plays the slot machines in a casino.
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