When we talk about risk in finance, we are talking about the chance that you could lose assets or lose your earning potential.

Which of these activities highlights risk as a potential loss of earnings?
Choose 1 answer:
Choose 1 answer:
(Choice A) spending all your savings on a luxury vacation
A
spending all your savings on a luxury vacation
(Choice B) losing your job unexpectedly
B
losing your job unexpectedly
(Choice C) a natural disaster damaging your house
C
a natural disaster damaging your house

(Choice B) losing your job unexpectedly