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:

Underground Prison Economy

A clandestine system of trade and services operated by inmates within a correctional facility.

Illicit Profits

Gains derived unlawfully from criminal activities or unethical business practices.

Prison Officers

Corrections personnel responsible for the supervision, safety, and security of prisoners in a prison, jail, or similar form of detention facility.

Misuse of Authority

The inappropriate or unethical exercise of power by someone in a position of authority.