Asked by Angel Cartagena on May 05, 2024

verifed

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.
verifed

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.