Scenario: Three Investment Options Are Available in a Market

question 24

Multiple Choice

Scenario: Three investment options are available in a market. All three options provide the same expected rate of return but have different levels of risk associated with them. Investing in Option A is the riskiest, while investing in Option C is the safest. Option B has a moderate level of risk associated with it.
-Refer to the scenario above.Which investment option will a risk-averse individual choose?

• A) He will choose to invest in Option A.
• B) He will choose to invest in Option B.
• C) He will choose to invest in Option C.
• D) He will be indifferent to investing in any of the three options.

---

Definitions:

STP Analysis

A marketing approach involving segmentation, targeting, and positioning to tailor marketing strategies to specific audiences.

Resource Allocation

The process of distributing available resources among various projects or departments within an organization to maximize efficiency and achieve goals.

Strategies

Plans or methods devised to achieve a particular goal or to deal with specific challenges and opportunities.

Marketing Plan

A comprehensive document or blueprint that outlines a company's advertising and marketing efforts for the future.