Risk Tolerance Is More Than a Function of an Individual's

question 173

Multiple Choice

Risk tolerance is more than a function of an individual's psychological makeup; it is affected by other factors such as:

• A) Person's current insurance coverage and cash reserves
• B) Nature of job
• C) An individual's family situation (for example, marital status and the number and ages of children) and by his or her age
• D) Person's current assets at a specified time period

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Definitions:

Self-Efficacy Beliefs

The confidence an individual has in their ability to execute behaviors necessary to produce specific performance attainments.

Core Self-Evaluations

A personality trait which encompasses an individual’s subconscious, fundamental assessment about themselves, their abilities, and their control over their environment.

Proactive Personality

Characterizes individuals who are naturally inclined to take initiative and effect change in their environments rather than merely reacting to circumstances.

Self-Regulation

The ability of individuals to manage their own thoughts, feelings, and behaviors to achieve long-term goals.