A Consumer Is Said to Be Risk-Averse When the Consumer

question 18

Multiple Choice

A consumer is said to be risk-averse when the consumer

• A) purchases assets with a zero nominal interest rate.
• B) prefers to hold assets with more non-diversified risk.
• C) prefers to hold assets with less non-diversified risk.
• D) prefers to not purchase a portfolio of assets.
• E) purchases assets with maturities of less than one year.

---

Definitions:

Results Based-Format

an approach focusing on outcomes and results in the context of performance assessments or project management.

Rater Bias

A tendency for evaluators to make subjective and potentially inaccurate assessments due to personal prejudices or preferences.

Graphics Rating Scale

A method used in performance appraisal that evaluates employees' performance on a continuum, often illustrated by a line or bar.

Performance Dimensions

Specific criteria or areas on which an individual's or organization's performance is evaluated, such as quality, efficiency, innovation, and customer satisfaction.