Event Risk Is the Possibility That

Event risk is the possibility that

A) a borrower will face some circumstance that will prevent the borrower from paying the loan back.
B) a major catastrophic occurrence, such as a hurricane, flood, or terrorist attack, will lower the return on the investment.
C) the overall price level will rise faster than expected, so that the lender is repaid in dollars that are worth less than the lender expected.
D) the lender will go bankrupt before the loan is fully repaid.