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Financial Harm and the Universal Risk Test
Opportunity cost, compounding losses, and a portable risk test for any risky spend.
Domain
Overview
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Self-paced study flow — not the projector or class assignment view. Read the pages, then complete the check when you are ready.
4 pages6 question check
Losses have opportunity cost. Before any risky spend, ask: how likely, how big, and can I absorb it?
Outcomes
What you'll learn
- Define opportunity cost of a loss.
- Apply probability × magnitude × absorbability.
- See why small repeated bets still hurt.
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