Asked by Angel Cartagena on May 05, 2024
Verified
_____ is the tendency to choose options that entail fewer risks and less uncertainty.
A) Risk monitoring
B) Risk aversion
C) Risk rationalization
D) Risk optimization
Risk Aversion
The tendency to choose options that entail fewer risks and less uncertainty.
Risks
Potential events or situations that could lead to harm or loss, often requiring management or mitigation in various contexts.
Uncertainty
A condition where knowledge is restricted, making it impossible to accurately detail the current state, predict future outcomes, or acknowledge multiple possibilities.
- Understand the impact of risk aversion on decision making.
Verified Answer
FT
Fabiola TorresMay 11, 2024
Final Answer :
B
Explanation :
Risk aversion is the behavior of avoiding risks and preferring the more certain outcomes, even if it means potentially lower returns.
Learning Objectives
- Understand the impact of risk aversion on decision making.