Final answer:
Risk in owning assets arises from expectations, unanticipated events, and surprise forecasts, all contributing to the uncertainty and potential variation in the asset's value.
Step-by-step explanation:
The risk of owning an asset comes from various sources, including expectations, unanticipated events, and surprise forecasts. Expectations play a role in risk because they set a baseline for potential returns on an investment, and when these expectations are not met, the value of the asset may fall.
Unanticipated events, such as economic downturns, natural disasters, or geopolitical conflicts, are occurrences over which investors have little control and can significantly impact the value of investments. Surprises in forecasts also contribute to risk, as they may lead to corrections in asset prices when new information contradicts the expectations upon which the initial investment was made. Insurance mitigates some of these risks but is limited by imperfect information about future events and individual risk profiles.