Choose all that are appropriate:
1. A non-financial business would often take credit risk.
2. There could be two "once in a lifetime" events (i.e., probability of about one in 20,000) happening in one year.
3. Good risk management will result in the elimination of risk.
4. When actual losses are greater than the value predicted by a risk model, that model is useless.
5. Volatility is a statistic that quantifies the extent of possible financial losses within a firm, portfolio, or position over a specific time frame.