The _____________________ Criterion Is Attractive to Those Decision-Makers Who Exhibit

question 62

Multiple Choice

The _____________________ criterion is attractive to those decision-makers who exhibit a neutral approach towards decision choices involving risk.

• A)Expected utility
• B)Expected value
• C)Maximin
• D)Maximax
• E)Decision theory

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Definitions:

Expected Returns

The anticipated amount of profit or loss an investor predicts to receive from an investment, taking into account the possibility of fluctuating values.

Unsystematic Risk

The hazard pertaining to an individual business or field, which can be reduced by diversifying assets.

Systematic Risk

A risk pervasive throughout the whole market or a specific segment of it, not reducible by investment diversification.