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CIMAPRO19-P02-1 Exam - Topic 1 Question 122 Discussion

A risk averse decision maker will:
A) accept a risk if it is accompanied by a satisfactory potential return.
B) avoid all risks.
C) accept a risk if the expected value of the potential outcomes is positive.
D) always select the course of action that has the lowest risk.

CIMAPRO19-P02-1 Exam - Topic 1 Question 122 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 122
Topic #: 1
[All CIMAPRO19-P02-1 Questions]

A risk averse decision maker will:

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Suggested Answer: A

by Lisha at Mar 06, 2026, 12:43 AM

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Rosalyn
3 days ago
I disagree, I believe C makes sense. Positive expected value is key.
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Kirk
8 days ago
I think a risk averse decision maker would choose D. Low risk is safer.
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Carlota
13 days ago
A is interesting. Accepting some risk for good returns can be wise.
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Peter
19 days ago
B seems too extreme. Avoiding all risks isn't practical.
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Golda
24 days ago
I disagree, I believe C makes sense. Positive expected value is key.
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Quentin
29 days ago
I think a risk averse decision maker would choose D. Low risk is safer.
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Mitsue
1 month ago
C makes sense, positive expected value can justify some risk.
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Vincent
1 month ago
I lean towards option D, lowest risk is safest.
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Rodrigo
1 month ago
Not necessarily, they might accept a risk for a good return.
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Alyce
2 months ago
I think a risk averse decision maker would avoid all risks.
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Novella
2 months ago
A is interesting, but I think they’d still be super cautious.
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Francis
2 months ago
Wait, can a risk averse person really accept any risk?
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Frankie
4 months ago
Definitely D, lowest risk is their go-to.
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Rickie
4 months ago
I disagree, they might accept some risks for good returns!
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Kaitlyn
4 months ago
A risk averse decision maker usually avoids risks.
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Paola
4 months ago
I agree, it's all about the expected value for them!
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Helene
4 months ago
Wait, can a risk averse person really accept any risk?
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Jacqueline
4 months ago
Definitely option D, low risk is the way to go!
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Myra
5 months ago
I think they might accept some risks if the return is good.
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Mari
5 months ago
A risk averse person usually avoids all risks.
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Carline
5 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.
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Herminia
5 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?
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Harrison
5 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.
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Vallie
5 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.
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