Rosie Is Risk Averse and Has $1,000 with Which to Make

question 6

Multiple Choice

Rosie is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option B is a low-risk stock that analysts expect to be worth about $1,102.50 in two years. Option C is a high-risk stock that is expected to be worth about $1,200 in four years. Rosie should choose

• A)option A.
• B)option B.
• C)option C.
• D)either option A or option B because Rosie is indifferent between those two options and they are superior to option C.

---

Definitions:

Gender Egalitarianism

The principle or belief in equal rights and opportunities among genders.

Equal Opportunities

The principle of treating all individuals fairly and without discrimination, especially in regards to employment, education, and access to services.

Sex Roles

Social roles and behavioral expectations based on an individual's sex, often culturally defined.

Uncertainty Avoidance

A cultural dimension that describes the degree to which people in a society are uncomfortable with ambiguity and uncertainty.