When an event is more likely to occur if some other event occurs, these two events are said to be positively correlated. By simultaneously impacting a broad range of investments, business cycles, severe weather, and _____ all increase financial risk.

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The sentence states that events which are more likely to occur if some other event occurs are positively correlated. The other mentioned events are business cycles and severe weather. Political events are also likely to occur in correlation with other events and can impact a broad range of investments, therefore, increasing financial risk.

When an Event Is More Likely to Occur If Some