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:

Aaccept a risk if it is accompanied by a satisfactory potential return.

Bavoid all risks.

Caccept a risk if the expected value of the potential outcomes is positive.

Dalways select the course of action that has the lowest risk.

Show Suggested Answer

Suggested Answer: A

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

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Myra

2 days ago

I think they might accept some risks if the return is good.

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Mari

7 days ago

A risk averse person usually avoids all risks.

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Carline

12 days 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

17 days 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

22 days 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

27 days 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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