Given That Tamar Is a Risk-Averse Person,she Might Accept a Bet

question 55

Multiple Choice

Given that Tamar is a risk-averse person,she might accept a bet with a 50 percent chance of losing $100 today if she had a 50 percent

• A)chance of winning $120 in two years and the interest rate was 11%.
• B)chance of winning $114 in two years and the interest rate was 7%.
• C)chance of winning $110 in two years and the interest rate was 3%.
• D)None of the above are correct;a risk averse person would not accept any of the above bets.

---

Definitions:

Environmental Scanning

The systematic process of collecting, analyzing, and using information about external events and trends which can influence an organization's decision-making process.

Potential Trends

Emerging or possible directions in which a given market, technology, or behavior might develop in the future.

Social Forces

The societal factors that influence and shape individuals' behaviors, beliefs, and attitudes, including culture, norms, and social structures.

Marketing Strategy

A long-term plan designed to promote products or services and achieve specific marketing objectives by understanding customer needs and creating a sustainable competitive advantage.