The Following Is an Example of Risk Aversion

question 8

Multiple Choice

The following is an example of risk aversion

• A)those applying for a well-paid job tend to be the most qualified
• B)more reckless drivers opt for cars with fewer safety devices
• C)the contractor with the lowest bid for a is under-qualified
• D)Initial Public Offerings (IPOs)seek investors when prospects look good

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Definitions:

Negotiable Instrument

A written and signed document promising a specified amount of money to a specified person or bearer on demand or at a future date.

Altered

Changed in character, form, or function; often referring to modifications that affect the integrity or original condition of an item or document.

Transferor

A transferor is a party who transfers rights, titles, or interests in a property or contract to another party, known as the transferee.

Transferee

An individual or entity that receives property, rights, or interest from another through a lawful transfer.