Risk Tolerance Refers to the Tradeoff Between Risk and ___

question 3

Multiple Choice

Risk tolerance refers to the tradeoff between risk and ___ demanded by a particular investor.

• A) promised yield
• B) expected volatility
• C) expected return
• D) internal rate of return

---

Definitions:

Attitudes

Psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor.

Health

The state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that organizes human needs into a hierarchical structure, with basic needs at the bottom and self-actualization at the top.

Consistency

The degree to which a substance holds together; uniformity or thickness of a fluid.