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A risk averse decision maker will:
Suggested Answer: A
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26 comments · newest first
NI
Nicholle
1 month ago
A is interesting. Accepting some risk for good returns can be wise.
UL
Ula
1 month ago
B seems too extreme. Avoiding all risks isn't practical.
RO
Rosalyn
2 months ago
I disagree, I believe C makes sense. Positive expected value is key.
KI
Kirk
2 months ago
I think a risk averse decision maker would choose D. Low risk is safer.
CA
Carlota
2 months ago
A is interesting. Accepting some risk for good returns can be wise.
PE
Peter
2 months ago
B seems too extreme. Avoiding all risks isn't practical.
GO
Golda
2 months ago
I disagree, I believe C makes sense. Positive expected value is key.
QU
Quentin
2 months ago
I think a risk averse decision maker would choose D. Low risk is safer.
MI
Mitsue
3 months ago
C makes sense, positive expected value can justify some risk.
VI
Vincent
3 months ago
I lean towards option D, lowest risk is safest.
RO
Rodrigo
3 months ago
Not necessarily, they might accept a risk for a good return.
AL
Alyce
3 months ago
I think a risk averse decision maker would avoid all risks.
NO
Novella
3 months ago
A is interesting, but I think they’d still be super cautious.
FR
Francis
4 months ago
Wait, can a risk averse person really accept any risk?
FR
Frankie
5 months ago
Definitely D, lowest risk is their go-to.
RI
Rickie
5 months ago
I disagree, they might accept some risks for good returns!
KA
Kaitlyn
5 months ago
A risk averse decision maker usually avoids risks.
PA
Paola
6 months ago
I agree, it's all about the expected value for them!
HE
Helene
6 months ago
Wait, can a risk averse person really accept any risk?
JA
Jacqueline
6 months ago
Definitely option D, low risk is the way to go!
MY
Myra
6 months ago
I think they might accept some risks if the return is good.
MA
Mari
6 months ago
A risk averse person usually avoids all risks.
CA
Carline
6 months ago
I feel like option B is too extreme since risk averse doesn't mean avoiding all risks, but I can't recall a specific example that clarifies this.
HE
Herminia
7 months ago
I'm a bit confused about option C; does "expected value" mean they would take risks if the potential outcomes look good on paper?
HA
Harrison
7 months ago
I remember a practice question where we discussed risk and return, and I think option A makes sense because they might accept some risk for a good return.
VA
Vallie
7 months ago
I think a risk averse decision maker would lean towards option D, but I'm not entirely sure if they would always choose the lowest risk.