If You Are Risk Averse, You Will

question 15

Multiple Choice

If you are risk averse, you will:

• A) only invest in low-risk investments.
• B) invest in an asset based only on its return, ignoring the risk of the asset.
• C) invest only in high-risk assets.
• D) invest in riskier assets only if there is additional return for taking the extra risk.
• E) avoid risk at all costs.

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Definitions:

Dualistic

Pertaining to or involving a division into two sharply distinct opposites or contrasting entities, often found in philosophical, spiritual, and cognitive contexts.

Emerging Adulthood

The time period from about 18 to 25, which is characterized by the shift towards increasing independence and autonomy.

Ethnic Diversity

The presence of a wide range of cultures, ethnic groups, and races in a community or organization, leading to a variety of viewpoints and experiences.

Identity Issues

Refers to conflicts or uncertainties about one's role, goals, abilities, or social affiliations.