Risk Aversion Is the Tendency to Place Greater Weight on Possible

question 160

Multiple Choice

Risk aversion is the tendency to place greater weight on possible losses than on  ____.

• A)possible gains
• B)past gains
• C)possible negative outcomes
• D)definite outcomes

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.

Accounting Equation

The foundation of double-entry bookkeeping, stating that Assets = Liabilities + Owners' Equity.

Excess Space

Excess space refers to the additional or unused space within a property or facility that exceeds the current needs of the occupants or users.

Materiality Constraint

An accounting principle that allows for the exclusion of insignificant financial information from reports because it would not impact decision-making.