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Steve has only 20 minutes to have lunch. Although he really likes McDonald's, the line is very long and he is concerned that he will not have a chance to get through the line and eat his lunch before he is due back at work. Steve perceives ________ risk in going to McDonald's today.
Risk-Free Asset
An investment with a certain return and no risk of financial loss, typically represented by government securities.
Risk Level
The degree of uncertainty and/or potential financial loss inherent in an investment decision.
Treasury Bills
Short-term government securities issued at a discount from face value and mature in a year or less, representing a safe and liquid investment option.
Risky Stock
A stock that carries a high level of volatility and uncertain returns, often associated with companies in emerging or highly competitive sectors.
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