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Read the following statements about risk and choose the correct option:
Statement 1: risk refers to uncertainty in outcomes and investors are more concerned on this unexpected loss.
Statement 2: risk is causally related to size of potential loss.
For this question, as it is mentioned that investors are more concerned about unexpected loss, in my opinion since most of the investors are not sound when it comes to assessment of risk that to unexpected, this statement should be considered to change. Thank you.
Location: F1B1C1
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