Which of the following best describes Subjective Risk?

Subjective risk is characterized as an uncertain estimation based on individual perception. This type of risk varies from person to person because it is influenced by individual experiences, feelings, and biases regarding uncertainty and potential loss. For example, someone who has had a negative experience with a particular investment may perceive it as riskier than someone who views the same investment through a neutral or positive lens. Unlike objective risk, which is based on quantifiable data and statistical measurements, subjective risk is inherently personal and qualitative in nature. This means that it cannot be easily measured or averaged out, as it reflects individual beliefs about the likelihood of outcomes, rather than actual statistical data or historical loss experiences.