Will Is Risk Averse and Has $1,000 with Which to Make

question 9

Multiple Choice

Will is risk averse and has $1,000 with which to make a financial investment.He has three options.Option A is a risk-free government bond that pays 5 percent interest each year for two years.Option B is a low-risk stock that analysts expect to be worth about $1,102.50 in two years.Option C is a high-risk stock that is expected to be worth about $1,200 in four years.Will should choose

• A)option A.
• B)option B.
• C)option C.
• D)either option A or option B because Will is indifferent between those two options and they are superior to option C.

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Definitions:

Influence Tactics

Strategies or actions used to persuade or influence others to support one's objectives or interests.

Fiedler's Contingency Theory

A leadership model that proposes the effectiveness of a leader is determined by the situational context and the leader's preferred style of leadership.

Task-motivated Leaders

Leaders who are primarily focused on accomplishing set tasks and objectives, often prioritizing work completion over interpersonal relationships.

Ingratiating Tactics

Strategies aimed at gaining favor or acceptance from others through flattery, compliments, or acts of kindness.