Risk Aversion Does Not Mean That Investors Avoid Risk Entirely

question 46

True/False

Risk aversion does not mean that investors avoid risk entirely. Rather, they will accept risk if they are adequately compensated by additional expected return.

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Definitions:

Performance

The level at which an individual, group, or system executes tasks and responsibilities, often measured against pre-set standards.

Graphic Rating Scales

A method used in performance appraisals where employees are scored on a continuum for various performance factors.

Key Traits

Fundamental characteristics or qualities of an individual that are considered essential to their nature or identity.

Initiative

The ability to assess and initiate actions independently.