The Amount of Risk an Entity Is Willing to Accept

question 53

Short Answer

The amount of risk an entity is willing to accept in pursuit of value is called ________.

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Definitions:

Selective Attention

Deployment of attention to only a chosen subset of the information available for processing in a situation. Selective attention to information that must be remembered later can be used as a memorization strategy.

Working Memory

A cognitive system responsible for temporarily holding information available for processing tasks such as reasoning and comprehension.

Long-term Memory

A type of memory capable of storing an unlimited amount of information for periods ranging from several minutes to a lifetime.

Limited Capacity

The theory that suggests human cognitive processing power is finite and can only handle a limited amount of information at one time.