Geena Has Made It to the Final Round in a Game

question 218

Multiple Choice

Geena has made it to the final round in a game show. She must now choose between accepting the cash that she has earned to date and risking the cash on the chance to win a new car. As Geena tries to decide between the two available alternatives, she is facing a(n) _____ conflict.

• A)approach-avoidance
• B)avoidance-avoidance
• C)frustration-pressure
• D)approach-approach

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Definitions:

Exposure To Risk

The state of being open to damage or loss from factors outside of one’s control, often used in the context of investments and financial markets.

Risk-Averse

The characteristic of preferring to avoid risk, typically by choosing more certain outcomes over those with potentially higher but risky returns.

Positively Correlated Events

Situations or variables that move in the same direction, implying that as one increases, the other also increases.

Diversification

A risk management strategy that involves allocating investments among various financial instruments, industries, or other categories to minimize risk.